Inside Milk
Milk collection forecast at Fonterra lower again
The New Zealand dairy cooperative Fonterra expects a lower milk collection again. The cooperative has therefore lowered production expectations for the second time in 3 weeks.
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Fonterra expects a production of 2018 million kilos of milk solids* in the 2019/1,51 season, which ends in May. Earlier on the New Zealand dairy cooperative already reduced the expected milk collection to 1,53 million kilos of milk solids.
Extreme drought
The reason for lowering the forecast is the extreme drought in the country; Dairy farmers experience many problems, especially on the North Island and in the north of the South Island. In some places on the North Island it has not rained for 40 days.
The ration composition of New Zealand cows consists of more than 80% fresh grass. As a result, the consequences of the drought in New Zealand are greater than in countries where this composition is more diverse. In addition, the country does not have a dry feed industry, which means there are virtually no alternatives to compensate for the low grass yield.
* 1 kilo of milk solids is 11,5 liters of milk.