The amount of product that Fonterra will offer at the August 18, 2015 GDT event has been significantly reduced from the previous forecast.
Fonterra now plans to offer 18,000t of whole milk powder (WMP), 33% less than previously forecast. This includes just 5,700t of WMP in Contract 2 (October shipment) compared to its previous forecast of 9,250t.
Skim milk powder (SMP) volumes have been decreased by 5% from the previous forecast. Anhydrous milkfat (AMF) volumes have fallen by 12% while butter volumes are 1.6% higher than previously forecast for Trading Event 146.
12 month volumes
“In response to current conditions in the global dairy markets, we have further modified our product mix to shift volumes away from base Whole Milk Powder (WMP) and into our other products in our portfolio such as value-add ingredients, consumer and foodservice."
Kelvin Wickham
Fonterra Managing Director Global Ingredients
Fonterra has significantly reduced its GlobalDairyTrade (GDT) offer quantity forecasts for the next 12 months. The Co-operative’s forecast offer volumes over the next 12 months for NZ products have been decreased by a further 56,045t. This includes a 62,930t decrease over the next three months but 6,885t of planned volumes being added back later in the year in anticipation of changing market conditions.
Fonterra Managing Director Global Ingredients, Kelvin Wickham said the changes come in response to current conditions on both the demand and supply sides of the global dairy market.
“In response to current conditions in the global dairy markets, we have further modified our product mix to shift volumes away from base Whole Milk Powder (WMP) and into our other products in our portfolio such as value-add ingredients, consumer and foodservice.
“In terms of our product mix, Fonterra is now selling approximately 70 per cent of its total product via channels other than GDT and as a result we do not expect a material impact on inventories,” said Mr Wickham.
