Drought conditions in New Zealand are impacting milk production. USDA’s Foreign Ag Service says dryness in key producing areas, high feed prices, a smaller herd, and labor shortages all contributed to a 6% drop in first-quarter milk production since last year, and the lowest first-quarter production since 2013. USDA says New Zealand has record farmgate dairy prices, but the drop in milk supply will likely lead to fewer cheese and whole milk powder exports, but slightly higher butter and skim milk powder exports.
