Highlights

  • New Zealand milk production surged 9.7% YoY in March, driven by strong seasonal conditions
  • EU output rose 4.6% YoY in February, led by Germany and France
  • Australia recorded 2.8% YoY growth in March, though annual production remains slightly lower

Overview

Fonterra Co-operative Group Limited (NZX:FCG) released global dairy update (April 2026). Global dairy Supply has strengthened in early 2026, with key producing regions showing broad-based production growth. New Zealand led the surge with a sharp increase in milk output supported by favourable weather conditions in both the North and South Islands. Australia also recorded modest growth in March due to improved soil moisture and strong fodder availability, although its annual trend remains slightly weaker. In the European Union, milk production rose steadily, driven by strong contributions from Germany and France amid supportive weather and feed conditions. Overall, improved climatic conditions are boosting global dairy Supply momentum across major exporting regions.

Why Is New Zealand Leading Global Milk Production Growth?

New Zealand milk production rose sharply by 9.7% year-on-year in March, supported by favourable weather conditions that improved pasture growth across key dairy regions. The North Island saw stronger collections, while the South Island maintained steady momentum. For the 12 months to March, production increased 3.3%, reflecting sustained recovery in output. These conditions highlight the importance of climate-driven productivity in New Zealand’s dairy sector, where pasture-based farming makes output highly sensitive to rainfall and seasonal feed availability.

What Is Driving Dairy Output Growth in Australia and the EU?

Australia recorded a 2.8% rise in March milk production, driven by improved soil moisture levels and strong fodder availability, although its annual production remains 1.2% lower. In contrast, the EU posted stronger momentum, with output rising 4.6% in February, led by Germany and France. Mild weather, high rainfall, and good feed quality supported production growth. Over the 12-month period, EU milk production increased 2.8%, reflecting steady recovery across major dairy-producing countries and stable agricultural conditions.