FONTERRA'S milk collection across New Zealand for the 12 months to May 31 is 8% higher than the 2012/13 season, but in Australia it is 2% lower for the season to date.
In its Global Dairy Update released yesterday, the dairy giant reports its NZ milk collection for the NZ 2013/14 season reached 1584 million kilograms milk solids (kgMS), 8% higher than the 2012/13 season.
However, milk collection for the Australian season (which doesn't finish until June 30) has so far reached 112 million kgMS, 2% behind the same period last season as a result of below-average spring conditions.
Fonterra reports while NZ farmers experienced varied conditions across the country in the 2013/14 season, a mild winter and spring ensured a good start to the season.
Fonterra's milk collection in NZ just for the month of May 2014 was 61m kgMS, up from 49m kgMS for May 2013.
In Australia, May milk collection for 2014 was 9m kgMS, up from 8m kgMS for May 2013.
In its global dairy overview, Fonterra reports a shift in supply and demand in the past few months is indicating that volatility continued to exert influence over the global outlook for dairy. Prices have come off the peak reached in February this year.
"Fonterra's assessment of published industry statistics indicates that total dairy exports have reached 14.2 million million tonnes, up 3% for the 12 months through to February 2014," Fonterra reports.
"Most of the growth appears to be from the European Union, NZ and the United States."
On the back of growth in NZ production, milk production growth in the top four major Southern Hemisphere exporting countries of Argentina, Australia, NZ and Uruguay is reported to have increased by 7.2% in the first quarter of 2014.
Fonterra reports demand still appears strong from China and Russia, the key drivers of the global dairy market, driven by demand for milk powders in China and cheese in Russia.
Dairy imports into China have surged in the past six months, with imports reaching almost 2 million tonnes or around 16% of global imports.
Growth in imports of dairy products into China were up 39% for the 12 months through to February 2014.
Global exports to Russia have grown 9%, reaching around 1.5 million tonnes for the 12 months to February 2014.