Analysis Milk
Higher milk supply in New Zealand still steady
The milk supply of New Zealand was above last year's level in August. Something we certainly did not see throughout the year, as in most months the milk supply was below last year's level.
In the months up to June, the New Zealand milk supply of 2024, except for February, was below last year's level. But from July (the start of the new season), the supply in New Zealand is improving. In July, the milk supply of 2024 was 0.31 million tons, higher than the 0.29 million tons of 2023, according to Eurostat data. In August 2024, the milk supply was 1.42 million tons, compared to 1.3 million tons in the same month of 2023. This is an increase of almost 10%. The previous month, the increase was 8.4%. The five-year average for August is 1.38 million tons, which New Zealand is also well above this year.
By August 2024, the total milk supply was 10.33 million tons. For 2023, it was 10.3 million tons in the same period. Although most months were below last year's level, the total milk supply so far is higher than last year.
Milk price increase
The winter months are over in New Zealand. In the coming months, milk supply will seasonally increase further, following the trend of recent years. Whether the increased milk supply compared to last year is related to the rising milk prices in New Zealand is still difficult to say. However, the roughage positions on many farms are well. What can also be stimulating is the already implemented free trade agreement between the EU and New Zealand. That agreement has been in effect since May 1 this year. What we do see is that New Zealand dairy giant Fonterra has made a series of significant investments partly as a result of this.
