Fonterra has revised the milk forecast for its New Zealand collections for the current 2017/2018 season to 1,480 million kilograms of milk solids (kgMS), down from its forecast in November 2017 of 1,525 million kgMS.
Dairy giant’s revised forecast of 1,480 million kgMS declined around 4 per cent on the 2016/2017 season, which itself was negatively impacted by weather conditions.
According to Fonterra’s company statement, the wet conditions experienced by farmers at the beginning of spring improved from late October and into November, but recent dry weather is continuing to impact soil moisture and pasture quality right across the country. Dry conditions are expected to continue, and even if the rain forecast for early in 2018 eventuates, it will not be enough to bring production back to previously anticipated levels.
Dairy giant has begun to take volumes of whole milk powder off the Global Dairy Trade (GDT) platform in response to lower milk supply, and has a programme in place to carefully manage sales both on and off GDT for the rest of the season as a result of the current weather conditions.
