Fonterra's New Zealand Milk Collection in December Hit by Dry Weather

A Fonterra milk tanker drives past dairy cows as it arrives at Fonterra's Te Rapa plant near Hamilton, New Zealand August 6, 2013. REUTERS/Nigel Marple/File Photo
( REUTERS/Nigel Marple )

Fonterra said on Tuesday its New Zealand milk collections in December slipped 6 percent, hurt by dry weather conditions across the country.

The dairy firm in late December had cut its New Zealand milk collection forecast for the 2017/2018 season to 1,480 million kilograms of milk solids (kgMS), down from its forecast in November of 1,525 million kgMS, citing dry weather.

“While the recent wet conditions have helped in some regions, it is unlikely to be enough to bring production back to previously anticipated levels,” the company said in a statement.

Fonterra had also cut its forecast payout to farmers for the 2017-18 season by NZ$0.35 to NZ$6.40 per kilogram of milk solids last month, pointing to volatility in global dairy markets.

Milk collection in Australia during December, however, rose 28 percent, supported by new suppliers and strong seasonal conditions.

Shares in Fonterra’s traded fund were marginally lower in early trade in a largely higher broader market.

 

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