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Fonterra Reduces Milk Volume for Coming Season

07 August 2015

NEW ZEALAND – Dairy giant Fonterra expects deliveries to contract two per cent in the coming 2015/16 period compared to the prior season.

Milk volume forecasts are for 1,589 million kilo milk solids due to the effect of low farmgate prices of $3.75, which, according to chairman John Wilson in “traditional farm management practices” being used.

“We are already seeing our farmers reducing stocking rates and reducing supplementary feeding to lower on-farm costs,” said Mr Wilson. “We expect to continue seeing our farmers make these sorts of on-farm decisions.”

He said that, even with the advantage of low-cost, pasture-based systems, New Zealand’s farmers are due for a “very difficult season”.

TheCattleSite News Desk

Top image via Shutterstock


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