Dip in June milk collection not as big as previously thought

Friday 22 July 2016 10:45 AM

Fonterra's dip in June milk collection not as big as previously thought

By Paul McBeth

July 22 (BusinessDesk) - Fonterra Cooperative Group says the decline in milk collection last month wasn't as big as previously thought because the extra day of a leap year mucked up its modelling.

The Auckland-based cooperative collected 9.9 million kilograms of milk solids in June, but revised down the year-earlier June collection to 10 million kgMS, meaning the monthly decline was only 1.4 percent and not the 10 percent drop it reported earlier this month.

"This error was caused by a modelling inaccuracy resulting from the change in days with 2016 being a leap year," it said.

Fonterra's North Island collection was revised to a 0.5 percent increase to 7.6 million kgMS from a 6 percent fall, while the South Island collection was changed to a 7.2 percent decline to 2.3 million kgMS from a 22 percent drop.

Dairy prices were steady at this week's GlobalDairyTrade auction with the index price at US$2,336, while whole milk powder prices rose 1.9 percent to US$2,079 a tonne. An expanding global supply has kept pressure on prices which have stretched local farmers' balance sheets as they face another year of operating below the breakeven farmgate payout.

Units in the Fonterra Shareholders' Fund increased 0.2 percent to $5.54 and have dropped 7.7 percent so far this year.

(BusinessDesk)

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