Fonterra cuts 2022/23 milk collection forecast by 1pc

Fonterra has cut its milk collections forecast for 2022/23 by 1 per cent. Photo / Supplied

Variable weather has forced Fonterra to revise down its milk collections forecast by 1 per cent to 1,480 million kg of milk solids (kgMS) for the 2023 season.

The co-op had previously reduced its 2022/23 milk collections forecast in early September.

Chief executive Miles Hurrell said this was due to weather conditions in parts of New Zealand causing a slow start to the season.

"The variable weather conditions which caused a slow start on farms have continued, contributing to lower collections through September and early October which has caused us to further revise our collections forecast," he said in a statement today.

Fonterra's milk collections fell by 4 per cent to 1,478 million kg in the 2021/22 financial year.

Dairy production locally and overseas has been constrained, which has put upward pressure on global prices.

However, at the last Global Dairy Trade auction, prices were weaker across the board, led by a 7 per cent slide in butter - which dipped below the US$5000 mark to average US$4983/tonne.

Whole milk powder, which peaked in March at US$4757/tonne, dipped 4 per cent to an average US$3573/tonne.

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Fonterra's final farmgate milk price for 2021/22 has been fixed at $9.30 per kg.

The co-op has forecast a 2022/23 farmgate milk price range of $8.50–$10 per kg, with a midpoint of $9.25 per kg.