New Zealand starts dairy season with record milk production

New Zealand’s 2026/27 dairy season has started at record levels. Milk production reached 131.2 mln kgMS in August, up 3.3% year on year. Season-to-date output is already 4.3% ahead of the same period last year.

Higher production is also supporting exports. New Zealand shipped 192.7 thsd tons of dairy products in August, up 10.2% year on year, while export revenue increased by 3.9% to $871 mln.

Milk powder shipments recorded the strongest growth. Whole milk powder (WMP) exports rose by 22%, while skim milk powder (SMP) shipments increased by 47%. WMP exports to China surged by 64%, while SMP shipments to other Asian markets grew by 68%.

At the same time, the global dairy market remains uneven. China’s total dairy imports fell by 14.7% year on year in August and by 5.1% year to date. Demand for milkfat products, however, remained strong, with AMF imports up 78% and butter imports rising 119%.

Further production trends in New Zealand will largely depend on weather conditions. A strong El Niño is forecast, which could bring drier summer conditions, weaken pasture growth and increase feed requirements, creating risks for maintaining the current pace of milk production.

Tags: Milk, New Zealand, dairy products