New Zealand-based Fonterra today slashed its milk production forecast for the 2014/15 season from 1.584bn kg of milk solids (kgMS) to 1.532bn kgMS to reflect "the impact of dry weather on production in recent weeks."
It confirmed that it will "meet all current sales commitments" but plans "to reduce the quantity of product offered on the GlobalDairyTrade auction platform."
Fonterra, which owns GDT, currently offers anhydrous milk fat (AMF), cheddar cheese, whole milk powder (WMP), skim milk powder (SMP), and rennet casein on the platform.
Commenting, Miles Hurrell, group director of cooperative affairs, Fonterra, said milk production is now 6.1% lower than this time last year.
He attributed this, in part, to the use of "more traditional practices" by dairy farmers looking to cut costs following Fonterra's December 2014 farm gate milk price (FGMP) forecast reduction.
“In the first half of the season, excellent pasture conditions resulted in milk volumes being higher than the previous season,” said Hurrell.
“The situation has changed significantly over the course of this month," he added.