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Lower Fonterra Production Outlook Could Move Lower

15 September 2015

NEW ZEALAND – Dairy cooperative Fonterra anticipates milk volume for the coming season to be 2-3 per cent back on the prior year.

And evidence that farmers are “pulling back” on production could lead to further downward revisions, the processor said last week.

However, Fonterra has maintained its volume forecast at 1,589 million kilo/MS for now. 

Reasons given for the drop are a return to traditional farming practices as farmers respond to a lower farmgate price forecast, according to Miles Hurrell, group director cooperative affairs.

He said: “Market data from several independent sources show that cows are being culled at higher rates than last season while many of our farmers are also providing early advice that they are expecting significant year on year volume reductions.

“In addition, currently our daily milk collection average is lower than for the same period last year.”

But he stressed it was still early days, with yields very weather dependant.

“Given these variable factors, we have decided to maintain our current forecast milk volume at this very early stage of the season,” he added.

TheCattleSite News Desk



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