[20 November/NZ Herald]

Positive growing conditions over spring has driven NZ milk production to a record high of 271.08 million kilos of milksolids in the peak month of October, according to DCANZ data. The previous record was 270.8 million kg in October 2014. October year-on-year milk production was up 6.5 per cent while season to-date NZ milk production is up 6%. ASB senior rural economist Nathan Penny said the bank was likely to raise its production forecast and drop its farmgate milk price forecast of $6.25/kg as a result of the data. Fonterra’s current farmgate milk price is in a $6.25 to $6.50 range.