North Island milk intakes were 5.9% lower for the month of November while in the South Island milk intakes were slightly higher by 0.4%. Fonterra also collected less milk from its Australian suppliers. For November Australia milk intakes were 3.6% lower, but are still slightly ahead on a seasonal basis.
In addition, Fonterra has reduced its forecast for total milk collections for the 2015-16 season. It now expects milk collections across the season to be down 6% on the 2014-15 season. Fonterra states “the decrease in forecast milk collection is a result of the low Farmgate Milk Price environment, where farmers are using more traditional practices to manage their business within the limits of a low payout.” Culling activity has been higher than usual this season, and farmers have been reducing the amount of supplementary feed they’re buying.
Source: Fonterra