New Zealand's milk production might not be as bad as forecast
Fonterra New Zealand milk collections have shown signs of recovery following unfavourable weather conditions throughout the peak months, according to a recent update by the company.
This has meant season‑to‑date volumes have remained 5% behind last season. The revision factors in drought conditions in Northland.
Fonterra has revised the forecast milk collection for the 2016/17 season to be down 5% on last season from the previous forecast decline of 7%.
Fonterra’s milk collection across New Zealand for the eight months to January 31 reached 1,053m kgMS, 54m kgMS lower than last season.
In January, it says collections reached 173 million kgMS, 1% behind the same month last season.
Meanwhile, Fonterra says its milk collection across Australia for the seven months to January 31 reached 76 kgMS, 5.6m kgMS lower than last season.
In January milk collection reached 10m kgMS, 2% behind the same month last season.
In its update, Fonterra also cited that US exports continue to grow with a sixth consecutive month of positive growth. However, it said recent export strength out of NZ and the EU appears to be softening.