According to its Global Dairy Update, total New Zealand collections for the season just ended came in at 1.57bn kg of milk solids (MS).

This is down 2.6% on the 1.52bn kg MS picked up in the 2015-2016 milking season.

The co-op said that last season’s milk production in the country was impacted by wet conditions through the spring, however more favourable weather conditions through their summer lifted productions but cooler conditions in May dented collections in the south Island.

The calving season for the 2017-2018 season starts from 1 July.

Price

Fonterra has set its initial forecast for milk payments to its suppliers at $6.50/kg milk solids (30c/l) for the 2017/18 season.

The co-op noted that it very early in the season to accurately forecast the total milk collection, and said it would continue to provide updates as the season progresses.

It has since reviewed the price forecast upwards as a result of this.

Outside New Zealand

In Australia milk production increased by 1m kg to 116m kg in the 11 months to 31 May following the milk price increase and better weather conditions.

Fonterra noted that of the main dairy exporting countries, New Zealand’s dairy export volumes lifted 4% in the 12 months to March, Australian volumes edged up by 1%, with US volumes up by 8%, while EU’s volumes increased by 4% for the 12 months to February.

China, the largest importer of dairy products, lifted its total imports by 10% in the twelve month to April. Its fluid and fresh dairy imports increased by 13%, whole milk powder up by 13% and whey powder by 12%.

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