Fonterra Suppliers Confident in Mainland Dairy Future
Fonterra's 460 milk suppliers in Australia, who will switch to Lactalis end of this month, are unfazed with the impending change.
In the North Island, milk collection was down 6% year-on-year, while milk collection in the South Island fell 2.9% for the month, according to My Farm agri global report for January.
Meanwhile, while consistent rain and low summer temperatures have kept grass green and growing in most parts of the North Island, though dry conditions prevail in Northland and Hawke’s Bay.
In Northland cows are being milked on supplements with the region reportedly at its driest for 10 years, affecting production.
However, pastures in the South Island are much greener, as a mild summer has created excellent conditions for grass growth.
In North Canterbury, farms have moved out of the drought, however in Southland rain, warmth and sunlight have all tracked below normal in recent weeks, putting pressure on pasture.
But palm kernel expeller (PKE) imports have tanked, accord to the report.
During the first 11 months of 2016, PKE imports declined 29% versus the same period in 2015 to 1.36mt.
On this basis, PKE imports in 2016 were the lowest since 2012 (1.16mt), suggesting plentiful local stocks as a result of strong purchases during late 2015 and early 2016, and reduced supplement use in the prevailing low farmgate price environment.
