Analyst Comments: The data released by DCANZ today shows that milk production for the first 10 months of the 2012/13 dairying season is still ahead of the previous season by 2.8%. However production was behind last season for the months of February and March. This trend is expected to be exasperated further in the months of April and May as a large portion of the national dairy herd has now been dried off. Agrifax estimates April production may be as much as 40% behind last season. The percentage differences in the year-on-year figures are further skewed by the high production that occurred last autumn.
Production in the later part of the 2012 New Zealand dairying season was nothing short of outstanding. Grass growth was phenomenal and milk production responded accordingly. Last season dairy farmers were also aware that the price they would be paid for milk supplied in the 2011/12 dairying season was going to be higher than what they will receive in the 2012/13 season. This was an added incentive to produce as much milk as possible last autumn. However this season the reverse is true as it is quite likely that next season's milk price will be higher than that paid for milk supplied in the 2012/13 season that runs until 31 May 2013.
