www.foodtechnology.co.nz 29
WEATHER
TO BLAME
Difficult weather conditions have affected
Fonterra Cooperative Group’s New Zealand
milk collection, with pasture quality and feed
growth rates contributing to the 4% fall.
The co-operative collected
135.3 million kilograms
of milk solids in February,
down from 140.9 million
kgMS a year earlier, taking the
season-to-date collection to 1,171
million kgMS (down 2% from a
year earlier). “Collection volumes
decreased in most regions in
February, as the impact of difficult
weather conditions continues to
affect pasture quality and feed
growth rate,” Fonterra says in
its monthly global dairy update.
“Despite more favourable weather
conditions recently, the cooperative
still expects its New Zealand
milk volumes to be down for the
year.” Fonterra forecasts annual
collection to be 1,480 million
kgMS, with a farmgate payout
of $6.55/kgMS reflecting better
global dairy prices. The dairy
company reported a first-half loss
of $348 million, including a $405
million impairment charge on its
Beingmate Baby & Child Food
investment and a $183 million
settlement with Danone over the
botulism scare in 2013. But while
Fonterra’s New Zealand production
is down, its collection across
the Tasman jumped 30% to 11 million
kgMS in February from a year
earlier, taking the season-to-date
tally to 111 million kgMS, up 28%.
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