Milk collection off to a strong start
Fonterra’s milk collection for the 2017-18 season is off to a strong start with production up 19 per cent compared with last year.
The co-operative collected 12 million kilograms of milk solids in June.
The volumes are small compared with peak milk collections, but the lift, reported in the co-op’s July Global Dairy Update, was a result of more farmers taking up winter milk contracts. The extra supply will support Fonterra’s consumer and foodservice business over the winter months.
North Island milk collection in June lifted 20 per cent to reach nine million kilograms of milk solids and South Island collections lifted 15 per cent to three million kilograms. However, total New Zealand milk production for the year to May fell by 1 per cent due to seasonal fluctuations.
Total New Zealand dairy exports in April decreased 2 per cent or 6400 tonnes compared with the same month last year. Decreases were seen in whole milk powder (WMP) and skim milk powder, down a combined 11 per cent or 16,000t. This was partially offset by an increase in cheese, fluid and fresh dairy, up a combined 21 per cent or 9500t. Exports for the year to April were up 3 per cent, or 82,000t, compared with last year over the same period. Growth was led by fluid and fresh dairy and infant formula, up a combined 35 per cent or 85,000t. The largest export category of WMP was down 1 per cent. Dairy exports out of the EU in March increased 6 per cent or 28,000t compared with the same month the previous year and lifted 3 per cent for the year to March.
United States exports increased 15 per cent in April, or 24,000t, compared with the same month the previous year. This was the tenth consecutive month of increasing exports. Exports out of this country were up 11 per cent for the year to April.
In the Chinese market, dairy imports were flat in May compared with last year.