Fonterra's July NZ milk output rises 5%

Aby Jose Koilparambil

Fonterra, the world’s biggest dairy exporter, on Wednesday said milk production in July climbed 4.8% year-on-year in New Zealand, helped by good conditions at the start of the season.

New Zealand milk collection rose 2.2% from a year ago in July, the second month of the 2019/20 season.

However, Australian milk production declined 9.9% in June on the back of reduced herd sizes and strained farmer finances, the dairy exporter said.

In May, the firm said it would shut a plant in Australia as reduced supplemental feeding, increased cow cull rates and a high number of farmers leaving the industry has dented its output in the country.

Total New Zealand dairy exports fell 0.2% in June, hurt mainly by declines in butter and anhydrous milkfat - pure milkfat produced only from fresh cream. Australia dairy exports increased by 10.3% in June, driven by fluid milk products.

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Reuters


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