Record Milk Output in New Zealand

WASHINGTON - Nov 13/06 - SNS -- Milk production in New Zealand is expected to rise 1% to reach a record 15.4 million metric tons (MT) during the 2006-07 season.

The U.S. agricultural attache for the country said the increase mirrors a projected 1% increase in cow numbers and is based on the notion growing conditions will be similar to 2005-06.

The increase in cow numbers is attributable to more land being converted to dairy production and increased carrying capacity on existing dairying land. While cow numbers continue to expand, the rate of growth has slowed over the last couple of years due to several factors including increasing land prices and increasing setup costs.

This implies slower growth for New Zealand milk production in the future. Additional factors that will likely limit the future expansion of New Zealand's milk production include growing concerns over the environmental impact of dairy production, high land prices, the profitability of dairy farming, and water access issues.

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