New Zealand’s milk production for the year to fall 7%

Milk production is forecast to drop 7% year-on-year in New Zealand, according to the country’s main co-op, Fonterra.

CEO Theo Spierings said: “Our current milk collection forecast is 1,460m kilograms of milk solids, down 7% on last season, and this is constraining sales.”

The decline in milk collection is driven “predominantly” by higher rainfall in areas of the North Island.

The company noted that this shift is impacting global prices and availability.

Fonterra has since August 1 cut by more than 55,000 tonnes the expected annual volume of dairy product it sell through its GlobalDairyTrade auctions.

October milk has been worth 35.87c per litre in West Cork. This was the Lisavaird Co-op average price paid for the month, with average constituents of 4.54% butterfat and 3.84% protein, and following the co-op’s 1c price rise.

While the variable price is 35.87c, suppliers got fixed prices of 39.92c or 36.90c. The variable base price for October at 3.6% butterfat and 3.3% protein is 29.25c, including SCC bonus and VAT.