Milk output plunged in August, down 4.2% YOY on a solids basis, taking season to date output 1.8% behind the prior season. The fall in August production was unexpected due to reasonable pasture growth conditions during the month.

According to NZX, milk production falls are likely due to feed constraints in the North Island during the previous peak grass growing season, which affected mating performance. Farmers have reported lower than expected calving. Pasture conditions have recently fallen below average across New Zealand, but are anticipated to rapidly improve into October.