Fonterra reduces milk collections forecast as tough weather conditions put strain on production
Fonterra Co-operative Group Limited has revised its New Zealand milk collection forecast for the current season to 1,480m kgMS, down 1% from 1,495m kgMS.
This is the second consecutive month when the Auckland-based cooperative has reduced its milk collections forecast, having done so in early September by reducing its forecast from an initial estimate of 1,510m kgMS to 1,495m kgMS. This means milk collections estimates are down 2% in recent months.
Warm weather and flooding, particularly in the country’s Far North and the top part of the South Island, have been to blame for a slow start to the season and lower-than-expected milk collections, with difficult pasture conditions affecting production levels.
Fonterra CEO Miles Hurrell commented: “The variable weather conditions which caused a slow start on farm, have continued, contributing to lower collections through September and early October which has caused us to further revise our collections forecast.
“As a result, we have revised our 2022/23 forecast down 1.0% to 1,480 million kgMS.”
Fonterra’s FY22 annual results revealed that milk collections for the 2021/22 season were down 4% at 1,478m kgMS. In August, the co-op reported that New Zealand’s milk production for the 12 months to July was down 4.4% on the year prior.
