increase font size
Fonterra has maintained its milk volume forecast for the 2015-16 season at 1,589m kgMS, about 2-3% lower than the amount collected last season.
Under the Dairy Industry Restructuring Act, Fonterra is required to update its current season forecast milk volumes by early September.
Group director cooperative affairs Miles Hurrell says although Fonterra had forecast a 2-3% decline in volumes there was evidence farmers were pulling back on production, which could lead to a further downward revision of forecast volumes as the season progresses.
“Farmers are responding to the lower forecast farmgate milk price by returning to more traditional farming practices. They are reducing the use of feed supplements, and lowering stocking rates per hectare as they concentrate on utilising pasture,” says Hurrell.
“Market data from several independent sources show that cows are being culled at higher rates than last season while many of our farmers are also providing early advice that they are expecting significant year on year volume reductions.
“In addition, currently our daily milk collection average is lower than for the same period last year.”
Hurrell says given these variable factors, Fonterra had decided to maintain its current forecast milk volume at this stage.
However, he adds, “It is still early in the season, and any forecast at this point is very dependent on weather conditions, which have so far been poor for production”.
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
New Zealand milk production is off to a strong start, with the first month of the 2025/26 dairy season recording a whopping 17.8% jump in milk production, compared to the previous season.
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Sheep and beef farmers are urging the Government to do more to stop productive farmland overrun by pine trees.
Auckland’s Eventfinda Stadium saw New Zealand’s top butchers recognized at the National Butchery Awards.
According to the latest Beef + Lamb New Zealand (B+LNZ) Stock Number Survey, sheep numbers have fallen by 1% while beef cattle numbers rose by 4.4%.
Beef + Lamb New Zealand says it is seeing strong farmer interest in its newly launched nProve Beef genetics tool, with early feedback and usage insights confirming its value in helping farmers make better breeding decisions and drive genetic improvement in New Zealand's beef herd.
The Innovation Awards at June's National Fieldays showcased several new ideas, alongside previous entries that had reached commercial reality.
To assist the flower industry in reducing waste and drive up demand, Wonky Box has partnered with Burwood to create Wonky Flowers.
OPINION: Sydney has a $12 million milk disposal problem.
OPINION: Canterbury milk processor Synlait's recovery seems to have hit another snag.
