The company’s Australian milk production dipped 4 percent in July on higher farm input costs and drought across parts of the country, Fonterra said in a statement.
Fonterra said total New Zealand milk exports rose 6 percent in July from a year earlier, while Australian dairy exports rose 4 percent.
International milk prices fell while volumes increased in September’s second global dairy trade auction. The next auction is scheduled to take place on Oct. 2.
Australia’s east coast has recorded less than a fifth of its typical rainfall over the last three months and farmland there is bone dry, with graziers buying in grain to feed their herds.