Could Weather Slow Milk Production?
Weather and low prices are causing hampered milk production in the Oceana region. According to New Zealand’s largest dairy co-op, Fonterra, dry weather and low prices caused Australian production to drop 3% last month alone. In New Zealand, production is suffering too. Meanwhile European and American farmers are increasing production.
An increase of milk in the marketplace is bearish news to the markets. “The problem we have as an industry is that anybody who thought about culling cows isn’t going to now,” says Mike North of Commodity Risk Management.
According to analysts, the only thing that could hamper production is abnormally hot and dry summer.
Dry Weather Hurting New Zealand Production