Fonterra NZ milk production forecast suggests steep end of season fall

Published 20 April 15

New Zealand (NZ) processor Fonterra forecasts its 2014/15 milk production will finish 2.1% below last year. This suggests supply during April and May will drop 29% year-on-year.

This is a higher annual production figure than previously forecast but still appears a fairly sharp decline towards the end of the season, given that rain has improved dry pasture conditions.

However, recent better pasture growth may be too late to support milk production this close to the end of the season, with many farms said to be already drying cows off or milking less often. Farmers are also reported to be keeping pasture usage tight now so they can grow more for next season when milk prices are expected to be higher.

Fonterra NZ milk production Apr15