Fonterra Milk Volume Forecast Reduced
Fonterra Co-operative Group Limited has reduced its milk volume forecast for the 2014-15 season to 1,532 million kgMS,
reflecting the impact of dry weather on production in recent weeks.
The new forecast is 3.3 per cent lower than the 1,584 million kgMS collected last season. The previous milk volume
forecast, made in December last year, was 1,584 million kgMS.
Group Director Co-operative Affairs Miles Hurrell said daily milk production was now 6.1 per cent lower than at the same
time last season, as farmers appear to be using more traditional practices to manage their farm businesses with the low
payout forecast.
“In the first half of the season, excellent pasture conditions resulted in milk volumes being higher than the previous
season.
“The situation has changed significantly over the course of this month.
“In some regions where pasture quality has declined markedly since mid-January, we are seeing some farmers drying off
cows early. There also appears to be a reduction in feed supplements, as the economics do not support their widespread
use this season,” said Mr Hurrell.
Fonterra has confirmed that it can meet all current sales commitments. However, in light of the reduced milk volume
forecast, it is planning to reduce the quantity of product offered on the GlobalDairyTrade auction platform, and via
direct sales channels.
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