There has been a relative surge in milk production in March this year despite less than ideal weather in some parts of the country. Previous updates had season to date milk production up by lower than 5%. However this is in comparison to exceptionally bad conditions in March last year, where the weather only began aligning to the long term average in May.
Fonterra also announced further details of an investment in a blending and packing plant in Indonesia, which will be completed in March 2015. It will be Fonterra's first manufacturing facility in Indonesia, and will support Fonterra's advanced nutrition products.
Fonterra will continue its Guaranteed Milk Price program in the 2014-15 season. Farmers will be able to lock in a price for a percentage of their milk at two time periods, either in June for a 12 month agreement or in December for a 6 month agreement.
The consumption gap in China and Russia is reported to have widened, with a decline in local milk production of 5.7% in China, and a 5-6% decline in Russia, contributing to growth in imports.
The update also reports on other business updates, lower GDT prices and growth in milk supply. Click here to download the full update.