Fonterra slashes forecast milk price, again
Fonterra has slashed another 50c off its milk price forecast as global milk flows shows no sign of easing.
However, this represents only 25 of the full season forecast collection.
"Extremely wet conditions were experienced throughout July, but milk volumes have generally been comparable to the previous season.
"Calving is in full swing in the North Island, with the South Island starting in early August," it says.
In July Fonterra collected 19 million kgMS. Season-to-date collections were 33.9 million kgMS, 0.6% behind last season.
North Island milk collections in July were 17.2 million kgMS, 3.5% behind July last season. Season-to-date collections were 28.7 million kgMS, 3.8% behind last season.
Fonterra says the North Island experienced very wet conditions throughout July creating some challenges going into calving.
Some pasture damage has been reported which will need to rectified over spring.
South Island milk collections in July were 1.8 million kgMS, 9.7% higher than last July. Season-to-date collections were 5.2 million kgMS, 22.3% ahead of last season.
"Although a large variace in percentage terms, June and July collections typically represent less than 2% of full season collections," it notes.
"Central South had their wettest July on record, similar rainfall to what was experienced in June last season.
"Lower South experienced favourable winter conditions supporting milk production and setting them up well for calving."
