Milk production continues to slide in New Zealand, with a 7.2% YOY drop in February on a milksolids bases and an 8.2% YOY fall a tonnage basis according to DCANZ data. Against strong prior year comparables, the drop in production marks the seventh consecutive YOY monthly fall, bringing season to date 4.0% behind the 2020/21 season on a milksolids basis.

According to NZX dairy analyst Stuart Davison, the latest fall in production is a continuation of a tough dairy season in New Zealand where a cold, wet spring turned to hot, dry conditions, affecting pasture growth, and putting pressure on feed. Supplement feed prices also continue to rise.