fbpx
Print this page
Tuesday, 25 October 2016 09:55

Rain knocks Fonterra’s peak milk collection

Written by  Sudesh Kissun
Fonterra says prolonged rain has taken the top off its peak milk this season. Fonterra says prolonged rain has taken the top off its peak milk this season.

Fonterra's peak milk collection has taken a hit from the prolonged wet weather hitting North Island production.

Last year the co-op hit the milk peak on October 22, collecting 87 million litres. As Dairy News went to print last Thursday the co-op was expecting a much lower peak this season.

Fonterra chairman John Wilson says the weather over the North Island “has absolutely taken the top of our peak this year”.

“I feel for our people -- the farmers, sharemilkers and farm workers… they are dealing with really tough conditions.

“Rain is good, it makes grass grow, but it makes farming very hard work; some farms are literally under water and it’s knocking production around.”

Fonterra is expected this week to announce its peak production figures, highlighting the impact of bad weather.

The co-op’s Global Dairy Update reported late last month that milk collection for all New Zealand reached 96 million kgMS in August, 5% lower than August last season. For the three months to August 31 milk collection reached 122 million kgMS, 4% behind the same period last season.

The North Island milk collection in August reached 71 million kgMS, 6% behind August last season. South Island milk collection in August reached 25 million kgMS, 1% behind August last season.

Wilson says milk production in key world dairying regions has dropped. Global dairy prices have moved up and down after a series of solid rises, he says.

While markets are consolidating, volatility remains the norm.“Volatility is never going to leave this market; what we are seeing is the market continuing to come into balance.”

Global dairy prices rose slightly in last week’s Global Dairy Trade (GDT) auction. The flagship whole milk powder price index was up 2.9%, to US$2760/tonne.

The GDT price index rose 1.4% at the latest auction, following a 3% cent dip in the previous auction which ended a run of price increases. WMP prices had dipped 3.8% in the previous auction.

Analysts say the latest price rise could be attributed to supply concerns about NZ.

More like this

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Popular Reads

Featured

$2b boost in NZ exports to EU

$2b boost in NZ exports to EU

New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.

US tariffs hit European ag machinery markets

The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.

Tributes paid to Jim Bolger

Dignitaries from  all walks of life – the governor general,  politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and  friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.

National

Machinery & Products