This figure is down 6% on the same period in 2015.

The period of June to December takes in the peak milk production period for New Zealand dairy farmers.

In December, the last month of the season, collections were 186m kg/MS, 5% behind the same month last season, as the poor spring weather, coupled with the difficult financial situation many dairy farmers find themselves in, took its toll.

Similar story in Australia

It was a similar story of decline for Fonterra’s milk collections in Australia. For the six months to 31 December reached 65m kg/MS, 7.6% lower than December last season.

In December, however, milk collection was 12m kg/MS, 1% ahead of the same month last season.

Fonterra, the largest dairy processor in New Zealand, is forecasting its own supply for the full milking season in 2016/17 to be back about 7% year-on-year in milk solid terms.

GDT

The first Global Dairy Trade auction of 2017 recorded a 3.9% decline. The average selling price of WMP was back by almost 8% to less than $3,300/t. Skimmed milk powder prices were up by 2.3% to $2,660/t.

Additional reporting by Patrick Donohoe and Lorcan Allen.

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Dairy trends: NZ milk supply continues sharp decline in November