New Zealand dairy farmers are on track to produce a record volume of milk for the 2018/19 milking season.

Milk production figures for the first seven months of the 2018/19 milking season (June to December) in New Zealand suggest Kiwi dairy farmers could pump out in excess of 21bn litres of milk this year.

Figures show increase

Figures released last week by the New Zealand dairy industry body DCANZ show that December milk production in New Zealand stood at more than 2.6bn litres, which is a 4.5% increase on the same month last year.

Fonterra milk trucks collecting from a New Zealand dairy farm.

This brings New Zealand milk production for the first seven months of the 2018/19 milking season to a cumulative 13.1bn litres, which is more than 4% ahead of 2017 production and 5.5% ahead of 2016 milk production.

The country is likely to produce close to 21.3bn litres of milk for the 2018/19 season

If the growth in New Zealand milk output continues at this pace, the country is likely to produce close to 21.3bn litres of milk for the 2018/19 season, which would be an all-time production record for the island country.

Impact on international prices

With over 90% of this milk exported on to world dairy markets, New Zealand milk production will have a big impact on international dairy prices for the coming year.

From January, New Zealand milk production will begin its seasonal decline as grass supplies and quality drop and cows begin to dry off in April.

However, if the weather during the autumn months in the southern hemisphere is kind, New Zealand dairy farmers are set for a bumper year in production terms.