29 December 2017
FONTERRA REVISES MILK COLLECTION FORECAST
Fonterra Co-operative Group Limited today revised the forecast for its New
Zealand milk collections for the current 2017/2018 season to 1,480 million
kilograms of milk solids (kgMS), down from its forecast in November 2017 of
1,525 million kgMS.
Fonterra''s revised forecast of 1,480 million kgMS is down around 4% on the
2016/2017 season which itself was negatively impacted by weather conditions.
Wet conditions experienced by farmers at the beginning of spring improved
from late October and into November, but recent dry weather is continuing to
impact soil moisture and pasture quality right across the country. Dry
conditions are expected to continue, and even if the rain forecast for early
in 2018 eventuates, it will not be enough to bring production back to
previously anticipated levels.
Fonterra has begun to take volumes of whole milk powder off the Global Dairy
Trade platform in response to lower milk supply, and has a programme in place
to carefully manage sales both on
and off GDT for the rest of the season as a result of the current weather
conditions.
ENDS
For further information contact:
Dan Wrigley
Fonterra Communications
Phone: +64 21 820 679
24-hour media line
Phone: +64 21 507 072
End CA:00312625 For:FSF Type:MKTUPDTE Time:2018-01-03 08:31:03