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May 2014 Dairy Update

Monday, 26 May 2014 at 1:35pm

Nationally Fonterra reported that April production was up 30% on last year as better feed conditions have helped the increase the flow. As winter arrives, more cows are being dried off and most of those left are now being milked once a day.

Winter weather with snow and heavy frosts arrived with a vengeance in the south, and dropped temperatures in many parts of NZ.  This means more farms will dry off, using teat seal and dry cow therapy to get cows settled into winter grazing.

Although there was another drop in the Global Dairy Trade prices, China’s demand for WMP and other dairy products is expected to continue to grow rapidly as a consequence of rising per capita income and increasing urbanisation, and limited domestic supply growth.

Economists also estimate that the global demand for milk from international markets will increase by over 50% between 2010 and 2025, with total world demand growth estimated to increase by a similar amount per annum.