The reduction was “largely a result of the low milk price environment, where farmers are continuing to reduce stocking rates and supplementary feeding in order to reduce costs", Fonterra said in its Global Dairy Update.
In Australia's July 1 to March 31 season-to-date, the milk collection was down 1% to 99 million kg/MS "as a result of unfavourable pasture growth due to dry conditions across most dairying regions, especially Victoria".
Fonterra said looking across its markets globally, the milk production growth rate had stabilised in the European Union and eased in other major exporting countries.
Dairy exports remained strong for NZ, Australia, and Europe while the United States was down largely because of increased domestic demand.
China, Asia and Latin America "continue to see strong growth in dairy imports, while the Middle East and Africa imports ease", it said.
Units of the Fonterra Shareholders’ Fund rose 0.2% to $5.86 and have declined 2.3% this year.
