The world’s top dairy exporter, New Zealand’s Fonterra Co-operative Group Ltd, said on Tuesday that milk production in its home market fell 1 percent in March, pointing to support for global dairy prices.
The fall in production came despite an improvement in weather conditions.
In March, Fonterra said its New Zealand milk collection fell 3 percent to 143 million kilograms of milk solids.
Milk collection in its smaller Australian operations jumped 26 percent to 11 million kilograms of milk solids from March last season due to favorable conditions, the dairy exporter said in a statement.
March’s production figures could affect New Zealand’s fortnightly milk auction, due to take place at midnight local time.
In the last auction on April 18, prices snapped four straight falls, hinting at ramped up global demand and further price rises.