Fonterra’s milk collection across New Zealand for the four months to September 30th was five percent higher than the same period last year reaching 308 million kgMS.
Strong winds created challenging conditions in September with some famers in the Central South Island sustaining significant damage to irrigation infrastructure and heavy showers in the North Island have recently slowed milk growth as cows head into their peak period of production.
The New Zealand milk production season extends from June to May with production ramping up to peak from October to December before gradually falling away through in late summer and autumn. This seasonal production curve requires processing and logistics capacity to handle peak milk flows, while also providing flexibility to adjust product mix outside peak months in response to changes in relative prices and market demand. It is optimal management of these factors that enables Fonterra to extract additional value from milk processed.
With the good weather across New Zealand over the past few months, pasture conditions have improved and milk production is strong coming into the peak of the season, up five per cent on this time last year. However, as we near the peak for production, milk growth to date for October has eased to 3.5 percent on a daily basis.
Peak day for milk processing is approaching and forecast to be on 25 October this season. NZ Milk Products has 26 sites across New Zealand and all plants are up and running smoothly, managing the growth in milk supply. Fonterra’s new Darfield drier which was commissioned in August has provided additional processing capacity with total production capacity at Darfield now reaching 6.6 million litres per day.
Fonterra’s milk collection data includes milk which they collect and sell on to other New Zealand processors as they are required to do under the DIRA regulations.
Source: ADPI
