News

Fonterra says milk intakes will not be down that much

The New Zealand dairy giant Fonterra has revised its 2014-15 milk intake estimate. Previously the cooperative had predicted production would be 3.3 percent below last year but now they say it will be just 2 percent lower.  The increase reflects improved weather conditions on the drought-stricken South Island.  Fonterra also raised their estimate of the amount of product they will offer on the Global Dairy Trade auction over the next 12 months.

In January, Fonterra, citing the South Island drought, said milk intakes were going to be lower and they were cutting-back on GDT offerings. That prompted some buyers to load-up at the February auctions, pushing prices higher.  Then Fonterra said production was not going to be hurt as much as previously thought and started offering products on the auction.  The overall price index fell 8.8 percent at the March 17^th sale.