New Zealand's milk production in February was 165,025t solids in February, virtually unchanged from the same month last year, according to the Dairy Companies Association of New Zealand.

This follows six months of strong supply, with figures higher than the previous two years throughout the southern hemisphere spring and summer.

While January production was 7.7% higher than the previous year, February supply was only 0.1% ahead.

For the season to date, NZ milk production has been up 4.9% on a milk solids basis.

Glanbia estimated this week that supply from New Zealand would remain stable this year.

Dry conditions are beginning to cause concern in key dairying regions, with Waikato regional authorities encouraging farmers to seek help if the weather affects their business. "Soil moisture levels are currently low, which means the ability of pasture to grow is reduced," Waikato regional council reported.

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