Fonterra cautious on milk supply outlook

Fonterra cautious on milk supply outlook

Fonterra has said rain is needed for its New Zealand farmer suppliers to maintain milk production levels in line with last year.

The company said its milk collection in New Zealand for the ten months to the end of March was up 1% on the year-ago period. However, collections in the month of March were 3% below March 2014. The farmer-owned dairy co-operative said March rainfall was average but follow-up rain is needed to support milk production levels.

In its most recent financial update for the six months to end-January, Fonterra said sales fell 14% year-on-year as selling prices came under pressure from global oversupply. In its global outlook today (14 April), the company said production in other milk producing regions was largely in-line with the same period a year ago, with production in the EU flat and up 2% in the US.