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.
This reduction is highly unusual, the co-op says.
“Fonterra is continually assessing the ongoing impact on its contract book and future production plans, given that milk collections at the peak of this season will not recover and will flow into the balance of the season,” the co-op’s global dairy update for September says.
It has further reduced its forecast milk volume for the 2016-17 season from 1523 million kgMS to 1460m kgMS.
In September, Fonterra New Zealand milk collection decreased 2% and Fonterra Australia collection decreased 9%.
“Since then the continuing impact of materially wetter-than-normal spring weather in most regions has further reduced Fonterra’s milk volumes in NZ."
Daily milk volumes in the central and upper North Island were well down in early October.
Collection nationwide in the four months to September 30 reached 297m kgMS, 3% behind the same period last season. September milk collection was 175m kgMS, 2% lower than September last season.
North Island milk collection in September reached 110m kgMS, 5% behind September last season. Unfavourable weather continues to affect production in most dairying regions. High rainfall in October have made conditions difficult in many regions, most noticeably in the central region where daily production is down about 14% on last year.
South Island milk collection in September reached 64m kgMS, 3% above September last season. Initial October collections indicate milk volumes in the South Island have begun to decline and may fall below last season.
