January milk production fell 6.1% YOY on a milksolids and volume basis according to DCANZ. This is the sixth monthly YOY decline in output, taking season to date output 3.6% behind the prior year comparative.

Hot and dry conditions in January put pressure on already stressed pastures and is likely to also impact February milk production, compounded by the fact that milk production in February a year ago was the highest on record.

Meanwhile, according to Fonterra’s latest Global Dairy Update milk intake was also down 6.1% YOY in January, bringing season to date collections 3.6% behind last season as hot dry weather affected most regions. North Island intake was down 9.5% YOY for January, with season to date collections down 4.1% on the year prior. The North Island experienced high temperatures and very dry conditions for the whole month contributing to feed deficits and heat stress. The South Island was less impacted by the hot and dry weather, as rain brought relief to feed supply. Otago and Southland were the only regions where January intake was ahead of the prior season comparative. Overall South Island production was only 1.4% lower YOY for the month, with season to date collections down 2.8% on the season prior.