Milk production is on track to set a record this season as the risk of drought derailing it continues to recede.
Earlier in the season, an increasing chance of an El Nino weather pattern this summer was raised and the expectation was the associated dry conditions could crimp production later in the season.
Yesterday, ASB senior rural economist Nathan Penny said relatively healthy soil moisture levels suggested production should "kick on'' over the next few months.
In December, production was 6.1 per cent higher than 12 months ago and, for the season to date, it was running 5.2 per cent ahead of the 2017-18 season.