Fonterra sets processing record; milk prices flat

Fonterra sets new daily processing record; milk powder auction prices unchanged

By Jason Krupp

Nov. 3 (BusinessDesk) - Fonterra Cooperative Group, the world’s biggest dairy exporter, set a new peak day milk processing record in October, while prices remained firm at its fortnightly milk power auction.

The dairy co-operative’s 26 sites located throughout the country processed 76.8 million litres of milk in a single day, beating the old record by 3 million litres, according to a statement. Fonterra said it has been investing in new technologies to boost its processing ability to keep ahead of production spikes.

“It was a slow start to the season with the wet weather in the Waikato and Taranaki and snow on the South Island,” said Gary Romano, managing director for trade operations. “However, this recent spell of fine weather has seen a sharp increase in production on-farm.”

Prices were unchanged overnight at the cooperative’s latest online auction of milk powder, having declined 2.5% previously.

Separately, the trade-weighted price of milk products was unchanged at US$3,542 per metric tonne, according to the globalDairyTrade website managed by CRI International.

Prices for anhydrous milk fat rose 4.5% US$5,394 a tonne, butter milk powder fell 1.8% to US$3,011, and skim milk powder fell 1.1% to US$3,021. Whole milk powder was unchanged at US$3,495 a tonne, though its third dropped 6.7% to US$3,316.

Fonterra sold 31,200 tonnes of product for some $110.5 million. There were 83 winning bids from 119 participants over 10 rounds of bidding.

(BusinessDesk)

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