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

 

Fonterra assesses impact of big drop in milk production

Friday 28 October 2016 09:57 AM

Fonterra assesses impact of big drop in milk production on future sales

By Fiona Rotherham

Oct. 28 (BusinessDesk) - Fonterra Cooperative Group is assessing the impact of a big drop in milk production this month on its contract book and future production plans.

In its latest global dairy update, the world's biggest dairy exporter said daily milk volumes across the central and upper North Island were down significantly in the early part of October due to the impact of wetter than normal spring weather and this has continued, particularly in the key dairying region of Waikato where daily milk volumes are down around 14 percent compared to last year.

Given that milk collections are now at the peak of the season, they are not expected to recover and will flow into the balance of the season, it said.

In September, Fonterra said New Zealand milk collection dropped 2 percent while in Australia it was down 9 percent. Season to date figures indicate a 2.9 percent drop in milk production compared to last year, with a 4.9 percent decline in the North Island, and a 13 percent drop in Australia.

As a result, the cooperative’s forecast offer volumes on the GlobalDairyTrade auction over the next year has been decreased by 11,199 tonnes. That means Fonterra has dropped GDT offer volumes by 55,481 tonnes since August.

Fonterra’s forecast milk volume for the 2016/2017 season has been reduced further to 1.46 billion kilograms per milk solids from 1.52 billion kgMS.

Milk production from most other major exporting regions is also continuing to soften. European milk production dropped by 1 percent in August, the third consecutive month it has declined. The change for the August year is 3 percent.

But in the US production increased 2 percent in September compared with the same month the previous year with farmers responding to favourable weather and grain prices. Milk production for the September year is up 1 percent on the prior year. The US Department of Agriculture’s forecast milk production for 2016 is up 1.7 percent on last year as cow numbers have steadied as a result of likely better returns.

On the export side, total New Zealand dairy exports in August dropped 5 percent on the prior year, although they’re up 6 percent in the August year due to increases in fluid and fresh dairy, up 41 percent, and AMF and cheese offsetting falls in whole milk powder.

Australia’s dairy exports rose 17 percent in July compared to the same month last year and 6 percent for the July year. The increase was largely due to infant formula rising 236 percent and fluid and fresh dairy up 20 percent.

China led the charge on imports which were up 25 percent for the month of August and for the August year following a rise in imports of fluid and fresh dairy, infant formula, and whey powder.

Dairy imports to the Middle East and Africa dropped 13 percent in June compared to the same month last year with a decline in all major import categories and are down 7 percent for the 12 months to June.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO: