News Milk supply
Fonterra sees less milk coming in
Fonterra has lowered its milk supply estimate for the current season ending in June.
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The estimate has been reduced by 1,6% to 1,5 billion kilos of milk solids (1 kilo of milk solids = 11,5 liters). Milk supplies in New Zealand are being slowed down by a cold start to the season. In addition, environmental legislation in the country is putting pressure on milk production.
The seasonal peak of milk supply in New Zealand last October was therefore 3% lower than the year before. In november the backlog had fallen to approximately 1,5%. CEO Miles Hurrel indicates that milk production was expected to increase further around Christmas and New Year, which would reduce the year-on-year difference. That expectation did not come true due to various circumstances.
GDT volume remains the same
Despite the lower forecast, the CEO sees no reason to further limit the volume via the Global Dairy Trade (GDT). "Due to the high demand outside the platform, we already anticipated this earlier this season."