Bay of Plenty dairy farmers are enjoying 'a match made in heaven” with bumper production, great growing conditions and a record pay out, says DairyNZ chief executive Tim Mackle.

Milk production is up nine per cent in the Bay of Plenty on the drought reduced production of 2012-13, bringing a much needed boost to the region.

'Milk production across the country is looking great for most areas. Production in Canterbury is also seven per cent up on last year, but some of this extra milk is from more cows being milked.”

Rural communities across the country will be celebrating record milk production as well as an increase in Fonterra's forecast Farmgate Milk Price for the 2013/14 season by 35 cents to a record level of $8.65 per kilogram of milk solids, he says.

'This increase in the milk price announced last week will give a well-needed boost to community confidence particularly for some areas around the country experiencing drought-like conditions.

'Farmers will be feeling confident and able to invest in infrastructure on their farms, may also retire debt, but others may be forced to use the extra cash to manage their way through the dry conditions,” says Tim.

'The extremely dry conditions are patchy with the Waikato, west coast of Northland, Gisborne, Wanganui-Rangitikei, Wairarapa, Marlborough, Hurunui, South Canterbury and Central Otago worst affected. Those facing dry conditions at present will welcome the payout news as they will have the cashflow to deal with some pretty tough situations,” he says.

Tim says the dry conditions are particularly severe in parts of the Waikato. Pastures have browned off and pasture covers are very low.

Farmers are having to purchase additional supplementary feed to be able to continue milking.

'But generally the story is still one of a bumper season with production for the entire country across all milk companies up six percent on last year. All we need now is some rain in those dry areas to make it a truly record season for most of our dairy regions,” he says.

Milk production increase on last year to end of February 2014

* Milk production to end February on same period last year