Fonterra's South Island milk collection fared better than the North Island in December, with a 2% increase on the corresponding month in 2014.
South Island suppliers produced 77 million kg ms, while their northern counterparts reached 118 million kg ms, 6% lower than December last season, Fonterra's latest Global Dairy Update said.
North Island collection was also down 6% for the season to date from June 1 to December 31, compared to the same period last season, while the South Island was down 1% in that period.
Lower collection was largely due to the low milk price environment, with farmers reducing stocking rates and supplementary feeding to reduce costs.
In Australia, milk collection in December reached 12 million kg ms, 5% lower than December last season.
Collection has slowed due to low pasture availability in most dairy regions.
Collection across Australia for the six months to December 31 reached 70 million kg ms, in line with the same period last season.
Open Country Dairy, New Zealand's second-largest dairy processor, has reduced its milk payout by 30c to an average price of between $4-$4.30kg ms.
Chairman Laurie Margrain told BusinessDesk the revision reflected the company's view on the market at present.
A reduction in Fonterra's 2015-16 milk price forecast, at present sitting at $4.60, was expected at the co-operative's next update.
In an economic note, ANZ said it was maintaining its range of $4.25-$4.50, but would be "toward the bottom end at present''.
Year-to-date, the bank had the milk price around the low-$4 kg ms mark.
