For the whole of 2018 New Zealand milk production was up 2% while the United States and European Union were each up 1% in the 12 months to the end of November.
Australia had no growth in the 12 months to the end of October and the monthly collection was down 6%, Fonterra’s own collections being down 14% and 18% respectively.
High input costs and poor seasonal conditions are hurting Australian dairy farmers and the processing industry remains very competitive for milk supply, Fonterra said in its January Global Dairy Update.
At this time last year Fonterra Australia reported 27-28% increases in milk collection because of good seasonal conditions and the fallout of suppliers to the troubled Murray Goulburn Co-operative, since sold to Canadian company Saputo.
It appears about half the suppliers Fonterra gained have been lost again.
Fonterra said dairy exports from NZ are up 1% and from Australia up 6% in the year to end-November. European exports were up 1% and US up 13% in the year to end-October.
The biggest growth markets were Asia, up 5% in dairy imports, and China, up 7%.
The first Global Dairy Trade auction for February after a three-week gap following two months of price recovery will be closely watched for signs continuing supply growth in NZ outweighs demand.
