Fonterra trims forecast for milk collection

Variable weather has forced Fonterra to reduce its milk collections forecast by 1 per cent to 1480 million kg of milk solids (kgMS) for the 2023 season.

The co-op had previously reduced its

2022/23 collections forecast early last month.

Chief executive Miles Hurrell said this was due to the weather in parts of New Zealand causing a slow start to the season.

“The variable weather conditions which caused a slow start on farms have continued, contributing to lower collections through September and early October which has caused us to further revise our collections forecast,” he said in a statement yesterday.

Fonterra’s milk collections fell by 4 per cent to 1478m kg in the 2021/22 financial year.

Dairy production locally and overseas has been constrained, which has put upward pressure on global prices.

However, at the last Global Dairy Trade auction prices were weaker across the board, led by a 7.0 per cent slide in butter — which dipped below the US$5000 mark to average US$4983/tonne.

Whole milk powder, which peaked in March at US$4757/tonne, dipped 4.0 per cent to an average US$3573/tonne.

Fonterra’s final farmgate milk price for

2021/22 has been fixed at $9.30 per kg. The co-op has forecast a 2022/23 farmgate milk price range of $8.50-$10.00 per kg, with a midpoint of $9.25 per kg.