Sharechat Logo

Helpful weather underpins higher NZ milk collection, says Fonterra

Thursday 31st January 2019

Text too small?

Fonterra Cooperative Group said milk collection was up 4.1 percent for the season-to-date in December as a mild start to summer supported pasture growth. 

The dairy giant collected 913.6 million kilograms of milk solids in the seven months to December versus 877.6 million/kgMS in the same period a year earlier. North Island collection was up 3.7 percent at 566.6 million/kgMS while South Island production lifted 4.8 percent to 347 million/kgMS.

"Overall, good animal health and favourable weather resulted in milk volumes ahead of last season, which was a three-year low where weather conditions and other factors had an adverse impact," Fonterra said.

Fonterra interim chief executive Miles Hurrell told NZME's the Country radio show earlier this month that the company still expects production to be about 3 percent higher this season than last. 

In Australia, meanwhile, milk collection for the six months to Dec. 31 was 72.4 million/kgMS, down 14.3 percent on the same period last season. In December, collection reached 13 million/kgMS, down 18.2 percent.

"High input costs and poor seasonal conditions continue, resulting in increased cow cull rates, decreasing the season’s milk production," Fonterra said. 

The latest forecast from the Australian Bureau of Agricultural and Resource Economics and Sciences is for milk production to fall by 4 percent to a 20-year low this season. 

Fonterra also said more than 500 McDonald’s restaurants across China now serve New Zealand sourced product for soft serve ice cream.  

"McDonald’s China chose to source milk powder from Fonterra to make their vanilla ice cream after our product received the highest sensory score - flavour, colour, stability - in their pilot," said the head of Fonterra Greater China, Christina Zhu. 

According to Fonterra, China is the world's biggest ice cream market, consuming around 4.3 billion litres in 2016. 

(BusinessDesk)

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Strong tourism, low rates keep lid on NZ current account deficit
Refining NZ margins jump to 18-month high
Goodman opts for underwritten $150m placement to raise capital
Kathmandu shares rise 9.3% on strong FY result, solid US performance
FMA seeks greater powers from the government
Goodman opts for underwritten $150m placement to raise capital
NZ dollar opens higher as dairy prices lift, oil eases
Napster's Sean Parker yet to seek OIO approval for Weta Digital stake
18th September 2019 Morning Report
Dairy product prices advance, bolstered by milk powders

IRG See IRG research reports