New Zealand dairy giant Fonterra has said that dry weather conditions have cut milk production and may lead to shortages of some products.

Speaking on Radio New Zealand, Fonterra’s director of operations, Max Parkin, said that production was expected to drop sharply over the next four to six weeks.

“If this big dry comes as we suspect, we’re going to go into the winter with almost shortages, in fact some reasonable shortages of some products,” Parkin was quoted by Reuters as saying.

He also indicated that ongoing dry weather could delay Fonterra’s expansion into new markets.