The sodden spring weather has taken its toll on milk production, which fell 2 per cent through August.
Fonterra’s milk collection across New Zealand reached 93 million kilograms of milk solids during the month. The co-operative’s September Global Dairy Update found this was down on the 95.8 million kilograms collected for the same month last year.
Continued wet weather proved challenging for dairy farmers and this impacted milk collection volumes.
For the three months to August 31, milk collection was flat at 122 million kilograms.
Milk flows were down across the country in August, down 1.4 per cent in the North Island, from 71.1 million kilograms to 70.1 million kilograms. In the South Island, there was a 5.5 per cent fall, dropping from 24.7 million kilograms to 23.3 million.
The co-operative recently confirmed its forecast milk collection for the season at 1575 million kilograms. However, it was still early in the season and a close watch is being kept on the challenging weather conditions.
Total New Zealand milk production lifted by 7 per cent in July compared with the same month last year, but was down 1 per cent for the year to July.
New Zealand dairy exports increased 10 per cent in June, or 26,000 tonnes compared with the same month last year.
This growth was driven by whole milk powder (WMP), fluid and fresh dairy up a combined 23 per cent for the month.
Exports for the year to June lifted 1 per cent or 25,000t on the previous comparable period. Fluid and fresh dairy was up 33 per cent or 69,000t, offset by a 49,000t combined decline in AMF and casein. WMP, skim milk powder (SMP) and cheese were relatively flat.
Across the Tasman, Australia production increased 2 per cent in June compared with the same month last year but production for the year to June was down 7 per cent. Fonterra’s update traced the decrease to poor spring weather conditions and the impact of soft farmgate milk prices earlier in the year.
European Union production in June was up 2 per cent compared with the same month last year. While the two biggest producers in Europe, Germany and France were down a combined 1 per cent.
US production in July increased 2 per cent compared with the same month last year. US volumes have been increasing at a rate of 2 per cent per month for the last 13 months.