Fonterra says New Zealand milk production up 6% in May
Milk producer Fonterra said on Tuesday that its total New Zealand milk production increased 6pc in May, helped by favourable autumn weather conditions.
Australian milk production rose 4pc in April, the company said in a statement.
Global dairy prices have been undercut by increased production, and fell during a fortnightly auction last month as stronger supply muted what buyers were willing to pay for key products.
A further fall is likely in the next fortnightly auction, due later in the day.
Fonterra, one of the world’s largest milk exporters, said its New Zealand dairy exports rose 10pc in April, while its Australian dairy exports were up 16 percent.
Shares of the cooperative group were down about 1.1pc, as against an over 1pc gain in the New Zealand benchmark.
Global dairy prices fell for the second time in a row at its most recent fortnightly auction held as stronger supply muted what buyers were willing to pay for key products.
The GDT Price Index dipped 1.2pc, with an average selling price of $3,481 per tonne, in the auction held in the early hours of the morning, after slipping 1.3pc off nine-month highs at the previous sale.