Dry weather crimps Fonterra's NZ, Australia milk output
Dairy group Fonterra on Thursday said its New Zealand milk production fell 10pc in April from the year before as dry weather hit farms.
The world’s biggest dairy exporter also said in a statement that its Australian milk output dropped 10pc in March from a year earlier amid continued drought and high farm costs in that country.
The group’s dairy exports from New Zealand increased by 27pc in March on-year, buoyed by demand from key Asian markets, although its exports from Australia fell 3pc in the same month.
Fonterra earlier in May cut its annual earnings guidance and said it would close a more than 100-year old facility in Australia as dry weather and increased costs continued to undermine its operations.
Shares of Fonterra on Thursday traded as much as 2.5pc lower to touch a record low, on track for their third consecutive session of losses.
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