Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
In its monthly global dairy update issued this morning, the co-op says milk collection volumes peaked at 89.7 million litres per day in mid‑October.
New Zealand has a predominantly pasture-based milk supply curve and production peaks around mid-October every season.
Fonterra says North Island collection in October reached 147 million kgMS, seven million kgMS ahead of October last season.
North Island production growth continues, supported by mild spring temperatures, good soil moisture and strong pasture growth.
South Island collection in October reached 86 million kgMS, three million kgMS ahead of October last season.
Conditions have been variable across the South Island with cooler conditions experienced in central and the lower South Island. However, the co-op says current pasture growth conditions are still supporting increased production compared to last season.
Milk collection across Australia for the four months to October 31 reached 44 million kgMS, four million kgMS ahead of the same period last season.
Favourable spring conditions continued, particularly in Tasmania, where good rain and mild temperatures have continued to drive production growth, Fonterra says.
Milk collection in Australia in October reached 15 million kgMS, one million kgMS ahead of October last season.
