A possible El Nino weather system has raised hopes of New Zealand milk production faltering, allowing global dairy supplies to rebalance.

Analysts at UK levy board AHDB Dairy point to dry weather as a reason to accelerate “the expected downturn” in New Zealand output.

Cull rates are tipped to rise from November onwards and once a day milking and early drying off is also expected to feature in herd management.

An AHDB spokesperson said: “For New Zealand (NZ), the largest dairy exporter, the typical result of an El Niño is dry weather, impacting on grazing and reducing milk production.

“El Niño is expected to be at its strongest shortly after NZ reaches its peak production period, when grass growth will be slowing seasonally.”