Fonterra's New Zealand Jan. Milk Production Falls 5% on Poor Weather

Fonterra said on Friday its domestic milk production in January had fallen 5 percent year-on-year, which could be seen as a boon for global dairy prices as New Zealand is the world’s largest dairy exporter.

The fall in production came on the back of unsupportive weather, the dairy producer said in statement.

“Although rain in late December and early January helped in some regions, other regions were heavily impacted by soil moisture and pasture growth challenges,” Fonterra added.

Milk production in Australia surged 4 percent in the same period.

Global dairy prices have seen some weakness lately, with prices slipping for the second time in a row at a fortnightly auction held this week, as an influx of supply from New Zealand curbed buying.