Sharechat Logo

Fonterra shares, units plumb record lows as milk production falls

Thursday 30th May 2019

Text too small?

Fonterra shares and units have fallen to record lows after the dairy giant said total New Zealand milk production fell 10 percent in April from a year ago and Australian production fell 10 percent in March.

Fonterra Co-operative shares, which can be owned only by farmers, fell as low as $3.95, or 2.5 percent, before recovering to $3.98. Meanwhile, units in the Fonterra Shareholders’ Fund, which anyone can own, experienced a similar decline.

“Dry conditions continued across most of the North Island and parts of the South Island,” Fonterra said in its latest Global Dairy Update.

Fonterra’s own milk collection was down 9 percent in April, but was up 1 percent to 1.45 billion kilograms of milk solids for the period running from June 1, 2018 to the end of April this year.

The monthly decline included a 13 percent drop in April to 57 million kg in the North Island. The season-to-date collection is 1 percent ahead of last year at 862 million kg. In the South Island, the April collection was down 5 percent to 52 million kg, but there was a 3 percent increase to 592 million kg for the season to date.

In Australia, Fonterra collected 31 percent less milk in April and 19 percent less season to date.

“Fonterra’s share of monthly collection continues to reduce due to adverse on-farm and weather conditions, increasing cull cow rates, retirements in key regions, cost of inputs and milk collection losses in a highly competitive market,” the company says.

“Dairy Australia continue to forecast a milk production decline of between 7 percent and 9 percent for the season.”

(BusinessDesk)

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.



  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:

NZ dollar consolidates weekly gain of more than a US cent
NZ dollar holds gains on improved dairy, bank capital outlook
MARKET CLOSE: NZ shares gain; banks rally on Reserve Bank capital decision
NZ dollar rises; bank capital rules less harsh than expected
RBNZ relaxes capital requirements, allows preference shares, extends phase-in
NZ dollar extends gain amid mixed US data, possible trade progress
MARKET CLOSE: NZ shares dip on eve of major regulatory decisions
NZ dollar sees off global headwinds, holds above 65 US cents
NZ dollar holds above 65 US cents; dairy auction prices mixed
Dairy index falls on weaker butter, milk fat demand

IRG See IRG research reports