New Zealand Farming Systems Uruguay says its milk production in July and August was more than 10% ahead of expectations.
The company says a milder than expected winter, together with good rainfall and grass growth allowed animals to be fed less supplement and more pasture.
It says rapid development of its farms continues, with four new milking sheds in operation since the end of June. A further eight are expected to be up and running by the end of the year.
The company expects its milking herd to increase to more than 20,000 by June next year.