Dairy exports from NZ fell by 2% in the year to the end of September but those of the United States rose by 11% and from the European Union by 5%.
The surge in exports from those two largest dairy producing regions helped explain why world prices were falling when production from NZ, the world’s largest exporter, was also falling.
The November edition of Fonterra’s Global Dairy Update said the spring milk production peak was 82 million litres a day, 10% below the peak three years ago and well below the installed processing capacity.
Fonterra’s October milk intake was up 2%, compared with the same month in 2016, but the flatter, elongated spring peak was repeated because of wet weather and low energy levels in pasture.
Season-to-date milk supply had not increased compared with the first five months of the 2016-17 season, Fonterra said.
The Dairy Companies Association reported season-to-date milk collection was up 1.1%.
The deduction to be made was that Fonterra continued to lose market share – if its supply was steady, supply to all other, smaller companies must have risen by as much as 7%.
European production for September had the largest growth, at 5%, since early 2016 as farmers increased milk production in response to increased demand.
Year-to-date EU production remained steady, whereas US production was up 2%, both year-to-date and in September.
EU exports were up 227,000 tonnes over the past 12 months, an amount equivalent to 8% of Fonterra’s annual production.
The biggest market growth was in China, up 12%, equivalent to 263,000 tonnes, and in Latin America, up 10% or 181,000 tonnes.
Australia’s milk production recovery slowed in September, down 1%, and the year-to-date figure was minus 4%.
However, Fonterra Australia said its collection in the four months to October 31 had risen 26%, including 31% in October.
It was enjoying a huge growth in market share after the troubles of Murray Goulburn.
Fonterra Australia collected 52.6m kg milksolids, compared with 502m in NZ.
