Fonterra says rain needed to support milk volumes

Dry conditions across most dairying regions meant follow-up rain was needed to hold milk production in line with last season over the coming months. Photo / Mark Mitchell

Fonterra says its milk collection in New Zealand for the 10 months to March 31 reached 1431 million kg of milk solids - 1 per cent higher than for the same period last season.

However, collection in March was 3 per cent behind March last season. North Island collection in March reached 80 million kg, which was in line with March last season, and compared with a 5.7 per cent decline in February.

South Island collection in March reached 60 million kg, 7 per cent lower than for March last season.

Rain in March, consistent with long-term averages, provided support for milk volumes, Fonterra said.

However, dry conditions across most dairying regions meant follow-up rain was needed to hold milk production in line with last season over the coming months, the co-operative said.

Fonterra last month revised its production forecast to a 2 per cent decline compared with last season, from a previous forecast of 3.3 per cent. Analysts expect production this year to be similar to last year's.

In its global commentary, Fonterra said EU production in January was in line with the same month last year. It was the first month since June 2013 where there had been no growth in EU milk production. Ireland posted the largest decrease of 14 per cent.

Only the United Kingdom and Poland showed any growth in milk production in January.

In the United States, production in January increased 2 per cent compared with the same month last year. The increase was below market expectations and affected by reduced production in the major dairy producing states of California, New Mexico, Texas, Washington, Oregon and Idaho, Fonterra said.

China's dairy imports in February fell by 36 per cent compared with the same month last year.