New Zealand: Dairy and Products Annual

  |   Attaché Report (GAIN)   |   NZ2021-0017

Following an exceptional milk production year in 2021 (and especially the first half of the year), FAS/Wellington is forecasting milk production to fall slightly in 2022. New Zealand’s milk production is forecast at 22.25 million metric tons (MMT), 0.5 percent less than the record-breaking volume in 2021. If realized this level would be more in line with recent growth trends, and it assumes normal weather patterns. Milk production for 2021 is now estimated at 22.37 MMT, 1.8 percent above 2020. The volume may have even been higher except cooler and overcast weather during the spring (August/September) impacted pasture growth, reducing potential production in the second half of the year. Farm gate milk prices remain strong in New Zealand, and exports have also been robust, especially to China.

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