FAS/Wellington’s New Zealand milk production forecast is raised for 2023 to 21.5 million metric tons (MMT) as a result of favorable pasture growing conditions entering the year and strong milk production during the first four months of 2023. If realized, this 2023 production would be up two percent from 2022. In the summer months of January and February 2023, key dairy growing regions experienced consistent amounts of rainfall, stimulating pasture growth. Despite this increase in milk production, the national dairy herd is continuing to shrink since peak numbers in 2015. China continues to be the largest consumer of New Zealand whole milk powder (WMP), on average accounting for 40 percent. However, processing during the last 12 months has seen a decrease in WMP production towards other commodity and specialty products such as cheese, butter, protein concentrates, infant formula, anhydrous milk fat, and skim milk powder.