Hard spring drains milk collection
Tough spring conditions have been blamed for a 3 per cent fall in milk production from farms supplying Fonterra for the 2016-17 season.
Fonterra’s total milk collection last season ended at 1526 million kilograms of milk solids (MS), according to Fonterra’s June Global Dairy Update.
North Island farmers ended the season 4 per cent down on last year, producing 915.7 million kilograms while South Island farmers’ milk collection was slightly down at 0.4 per cent, producing 610 million kilograms.
‘‘Wet conditions through spring saw collections down 8 per cent in October, however favourable weather conditions through summer saw a lift in milk production.
May collections were 66 million kilograms MS, 1 per cent down on the same month last season with cool conditions impacting the South Island,’’ the update said.
Fonterra predicted in the update that 1575 million kilograms would be collected for the 2017-18 season.
‘‘While it is very early in the season to accurately forecast the total milk collection, we are required to provide a new season forecast under DIRA [legislation ensuring the industry remains competitive]. At this stage, collections are estimated to increase by 3 per cent in 2017-18 assuming a return to more usual climatic conditions.’’
Fonterra’s milk collection in Australia for the 11 months to May 31 reached 116 million kilograms, one million kilograms higher than last season.
Milk production in the European Union for the year to March fell 2 per cent, but rose 2 per cent for the year to April in the United States.
Total New Zealand dairy exports totalled 117,000 tonnes for the year to March, up 4 per cent over the same period last year.
Whole milk powder, New Zealand’s largest export category increased 15 per cent or 14,000 tonnes, while exports of fluid and fresh dairy products increased 43 per cent.
Offsetting these gains were falls of 8 per cent in cheese and nine per cent in skim milk powder. Dairy exports from Australia, the EU and the US lifted 1 per cent, 4 per cent and 8 per cent respectively.
Volumes of imported milk continued to strengthen in China, Asia and Latin America. Chinese dairy imports lifted 10 per cent for the year to April, or 203,000 tonnes.
Imports lifted 7 per cent in Asia, or 296,000 tonnes for the year to February, compared with the same period the previous year, and Latin America was up 11 per cent, while the Middle East and Africa dropped 3 per cent.