New Zealand milk production rose 4.7% YOY in August on a milksolids basis, bringing season-to-date output 4.5% ahead of the prior year comparable. August intake is the highest milksolids intake recorded and is 8.1% ahead of the 5-year average.

Production is in line with NZX forecast which is for a 2% increase in milk production in 2020/21. NZX reports spring pastures look to be in a good condition, with soil moisture much improved across the country. There are still some spots that are drier than usual, notably along the east coast of the South Island. NIWA has recently declared a La Niña event for New Zealand, which may have a greater impact heading through spring and into summer.