Fonterra increases milk production forecast

Fonterra now expects to collect 1,556 million kgMS in the current dairy season. This is an increase of 6.4% for the 2013/14 season over the previous season. Fonterra acknowledges that while there remains a risk that dry conditions through summer will again impact milk supply, the record Milk Price forecast provides additional confidence that milk supply will increase above their previous estimate.  “Climatic conditions through spring were favourable as above average temperatures and below average soil moisture created excellent pasture growth conditions through most of New Zealand’s dairy regions” explains Fonterra.  This resulted in record peak milk collection of 87m litres per day in October and has underpinned the production outlook for the 2013/14 season.  Milk collection across New Zealand for the six months to 30 November 2013 reached 741 million kgMS, 3.8% higher than the same period last year. Late November rains were welcomed by farmers beginning to experience low soil moisture conditions. More rain has come into mid December driving pasture growth leading into the summer period.  Fonterra revises their milk production forecast on a quarterly basis, based on actual production volumes in line with DIRA requirements.