November 14, 2006

New Zealand milk production set to create record as herd grows

Milk production in New Zealand, the world's largest dairy exporter, might create a record as herd numbers increase, according to the USDA.

The milk production could go up by 1 percent from last year, reported the US Foreign Agricultural Service's Alastair Patterson in the New Zealand Dairy and Products Annual.

The increase was based on an expected 1 percent increase in cow numbers and similar growing conditions to last season, Patterson said. The increase in herd could be attributed to more and more land being converted to dairy production as also increased carrying capacity on existing dairy land.

Higher production would bring more exports contributing to the country's economy. The forecast gain also comes as drought threatens to curb output in Australia, the world's No. 3 dairy exporter.

More than 95 percent of New Zealand's dairy production is exported with the US and China accounting for a major share.