Fonterra lowers milk collection forecast for 2022/23
Production weighed down by poor weather
14 October 2022
1 minute read
By: New Zealand's Fonterra on Friday lowered its 2022/23 milk collection forecast for the second time in more than a month, weighed down by poor weather conditions in parts of the country through September and early October, reported Reuters.
The downgrade came after the world's largest dairy producer last month flagged a weather-related fall in milk production at home and cut its collection forecast.
"The variable weather conditions which caused a slow start on farm have continued, contributing to lower collections through September and early October," Chief Executive Officer Miles Hurrell said.
The Auckland-based company has been a victim of record rainfalls and warmer temperatures, which hurt pasture growth and milk production, further causing a slow start to the season.
The company said it expected New Zealand milk collections of about 1,480 million kilograms of milk solids (kgMS) in 2022/23, down from its previous forecast of 1,495 million kgMS.
The world's biggest dairy exporter had reported milk collections of 1,478.0 million kgMS for the 2021/22 season, down 4% from the prior year.
In its monthly global diary update, the company had said August was clouded by some of the warmest temperatures on record and heavy rainfalls and flooding in some regions, adding that the country's milk production for the 12 months to August was down 4.4% from last year.
