Fonterra reports a 2.5% year-on-year production gain driven by favourable weather and strong collections across islands.
New Zealand dairy producers closed out December with stronger output, as favourable growing conditions and higher soil moisture helped sustain pasture growth nationwide, lifting milk production 2.5% above the same month last season. This continued resilience in milksolids output reflects both environmental and operational factors supporting herd productivity.
Fonterra’s latest Global Dairy Update shows that milk collections in December totalled 183 million kg MS, underscoring that on-farm productivity gains and pasture availability translated directly into increased kilogram milksolids throughput for the cooperative’s processing network. Season-to-date collections sit 2.6% higher than the previous season, indicating sustained production momentum.
Regional performance across New Zealand varied, with the North Island recording a modest 0.1% lift in December collections, driven by good pasture on eastern and West Coast belts, though offset somewhat by heat and dryness in parts of Northland and central districts. Meanwhile, the South Island posted stronger growth, with collections up 5.6% year-on-year, a notable outperformer in the national dairy landscape.
Over the 12 months to December, overall production also expanded, rising 1.9% compared to the prior period, highlighting that the positive trends in the peak season extended into cumulative annual output. Fonterra forecasts total season collections of 1,545 million kg MS, suggesting the full year will maintain above-average milk flow.
Despite the production uptick, export volumes showed mixed dynamics, with November dairy exports declining 9% year-on-year, largely due to lower shipments of whole-milk powder and fluid milk products. However, export performance across a full year still edged up slightly, lifted by increases in cheese, butter and anhydrous milkfat exports — a pattern that illustrates divergent product demand and trade flows impacting NZ’s global dairy position.
Source: Farmers Weekly NZ — https://www.farmersweekly.co.nz/markets/ideal-growing-conditions-keep-milk-flowing-in-december/
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