February milk production well down on 2012

Milk production continued to lag well behind last year in February, with producers delivering a record low for the month of just 976m litres.

According to provisional figures from the RPA, that was 81.3m litres or 7.7% lower than in February last year – although when adjusted for the leap year, the gap narrows to just under 45m litres. Cumulative production for the milk year to date reached 11.86bn litres – 435.6m litres less than the same time last year. However, butterfat remained at recent high levels, averaging 4.13% for the month and 4.07% cumulatively.

Higher cream and butter values meant the Dairy Group’s market price equivalent – based on a basket of commodity prices – held steady in February, at 29.92p/litre. “With UK production set to track 5% below last year until May/June, higher UK prices will be required to encourage improved supply,” said director Nick Holt-Martyn.

Weaker currency had helped to support domestic commodity markets, with the latest Fonterra auction also firmer, he added. “New Zealand supply is running up 6.7%, but is heading into dry weather, which is starting to reduce late season production.”

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