Synlait, the New Zealand-based infant formula maker, has said the current dry weather facing New Zealand farmers is expected to have “little impact” on its milk supply.
Scientists at the National Institute of Weather and Atmospheric Research have warned that soil moisture levels are unusually low, meaning that without rainfall the country could be plunged into a drought.
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“Sustained rainfall over an extended period of time is needed to return conditions back to normal. Additionally, if current conditions persist or worsen, then drought conditions may be imminent,” Niwra warned today (16 January).
This has sparked concerns over the impact that drought could have on New Zealand’s dairy sector.
In a statement, Synlait MD Dr John Penno stressed Synlait’s milk supply remained at “budgeted levels”.
“This is consistent with what we’ve seen in the past with dry weather, which Canterbury farmers are used to. We have reviewed the factors at play and do not expect it to have much of an impact on our milk supply,” said Dr Penno. “We’ve been in touch with a large number of our farmers. It’s tough for them at the moment, but most of them are upbeat and share our view that the weather we’re experiencing is not unusual and they are expecting low levels, if any, of lost production at this stage.”
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By GlobalDataThe company added it is “monitoring the situation closely”.
Representatives from industry body Dairy New Zealand and Fonterra, the country’s largest dairy processor, were not available for immediate comment.
