Fonterra revises milk production forecast

Fonterra has raised its milk production forecast for the 2013/14 dairy season, following strong output during August.  Production during the first three months of the dairy season was 3.4% higher than during the same period last year.   “The improvement in climatic conditions over the past few months has brought temperatures and pasture growth back in line with historic averages and we are anticipating that the 2013/14 season will result in more normal growing conditions compared to the large variances seen in the 2012/13 season” states Fonterra. “While it is still early in the season, based on improved conditions across the country we are forecasting milk volumes to grow by 5% to 1,541 million kgMS for the 2013/14 season” says Fonterra. “While it is still early in the season, based on improved conditions across the country we are forecasting milk volumes to grow by 5% to 1,541 million kgMS for the 2013/14 season” Fonterra The increase in Fonterra’s milk production forecast means is now anticipates additional milk production growth over and above a recovery from last season’s drought.   Fonterra’s milk production forecast is now at the upper end of the Agrifax milk production forecast. Since May 2013 Agrifax market analysts have been forecasting milk production growth in the range of 3 – 5% for the 2013/14 season.  Agrifax revises its milk production forecast on a monthly basis but has not changed its forecast thus far.  August intakes across New Zealand were up by at least 8% on last year, as the two main dairying regions have a strong start to the season reports Agrifax. In the Waikato milk production has benefitted from good pasture covers, while in Canterbury the land in dairying continues to expand and productivity gains continue to come from farms recently converted to dairying.  However Agrifax does warn that the level of milk production growth achiev