Fonterra milk collection down more than 8%

New Zealand's largest dairy co-op has reported an accelerated fall in milk production, raising hope for a continuing correction of global oversupply.

Thomas Hubert

21 November 2016

Fonterra milk collection down more than 8%

Fonterra's Endendale plant in New Zealand.

According to Fonterra’s latest financial update, the co-op’s milk collection was down 8.3% in October compared with the same month last year. This brings this season’s production to date to just over 500,000t of milk solids, down 5.2% on the same four months in 2015.

“Fonterra New Zealand milk collection continues to be impacted by unfavourable weather conditions across the North and South islands,” the co-op’s report reads. “Production levels are not expected to recover and lower volumes will flow into the balance of the season.”

New Zealand’s milk season runs from June to May.

Fonterra’s much smaller Australian milk collection was also in freefall, down 10% in October and 12% so far this season. Here again, the co-op cited weather conditions but expected supply to pick up in Australia in the coming months.

Milk supply continues to drop across Europe