After a wet and cold spring,dry conditions are now hampering grass growth in Northlands and Hawke’s Bay. Milk production in Northlands is being supplemented with imported feeds as the area has reported the driest spell for 10 years.

Growth condition in the South Island is much better as mild weather is driving grass growth. However, there was drought conditions in Canterbury and in Southland growth conditions are below normal.

Drop in palm kernel imports

Imports of Palm Kernel have dropped off dramatically, with imports down by 29% to 1.36m tonnes. This is the lowest level since 2012 when 1.16m tonnes was imported suggesting a high level of stocks as a result of strong purchases in late 2015 and early 2016 as well as reduced use when milk prices were low.

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Fonterra milk supply down 6% in 2016