Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

CORRECT: Fonterra lowers NZ milk collection forecast

CORRECT: Fonterra lowers NZ milk collection forecast for this season on dry weather

(Corrects percentage change to reflect amended Fonterra statement in lead and second paragraph)

By Tina Morrison

Jan. 3 (BusinessDesk) - Fonterra Cooperative Group expects to collect 3 percent less milk from its New Zealand suppliers this season than it did in the prior season as dry weather stunts grass growth and lowers milk production.

Auckland-based Fonterra revised its forecast for its New Zealand milk collection for the current 2017/18 season to 1,480 million kilograms of milk solids, down 3 percent from the 1,525 million kgMS it collected in the 2016/17 season, it said. In December it had forecast milk collection would be in line with the previous season.

Fonterra, the world's largest milk processor, said wet conditions experienced by farmers at the beginning of spring improved from late October and into November, but the recent dry weather is continuing to impact soil moisture and pasture quality right across the country. Dry conditions are expected to continue, and even if the rain forecast for early in 2018 eventuates, it will not be enough to bring production back to previously anticipated levels, it said.

The price of whole milk powder rallied 4.2 percent to US$2,886 a tonne in the Global Dairy Trade auction overnight, after Fonterra said it has begun to take volumes of whole milk powder off the auction platform in response to the lower milk supply and will carefully manage sales on and off GDT for the rest of the season as a result of the current weather conditions.

Some 13,255 tonnes of whole milk powder was offered at the GDT auction, 19 percent less than at the previous GDT ahead of Christmas. Fonterra advised last week that it plans to reduce the volume of whole milk powder that it plans to sell on GDT in 2018 by 10,011 tonnes, or 1.6 percent, from its previous forecast.

Units in the Fonterra Shareholders Fund, which gives investors exposure to Fonterra's earnings, last traded at $6.41, having gained 6.8 percent over the past year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

$7.5 Billion Surplus: Government Accounts "Show Strong Economy"

“The surplus and low levels of debt show the economy is in good shape. This allows the Government to spend more on infrastructure and make record investments in health and education,” Grant Robertson says. More>>

ALSO:

New OIO Application Trumps Judicial Review: OceanaGold Cleared To Buy Land For Waihi Tailings Expansion

In a surprise turnaround, the government has given OceanaGold a greenlight to buy land to expand its Waihi mine after the application was previously turned down by Land Information Minister Eugenie Sage. More>>

ALSO:

Christchurch Rebuild: Fletcher Sued For $7.5m Over Justice Precinct

Fletcher Building is being sued for $7.5 million by utilities contractor Electrix, one of the subcontractors on the Christchurch Justice and Emergency Services Precinct. More>>

Three New Drugs: PHARMAC Signs Bundle Deal For More Cancer Medicines

420 New Zealanders with lung cancer, breast cancer, multiple sclerosis and respiratory disease will benefit each year from a bundle deal PHARMAC has finalised with a medicine supplier. More>>

ALSO:

"Levels Playing Field": Government Responds To Electricity Price Review

The changes announced today include: • Supporting new and independent retailers by requiring the big power companies to sell into the wholesale market at affordable rates. • Extending discount rates to all customers • A pilot scheme to help customers who have not switched power providers before to shop around for better deals... More>>

ALSO: