New Zealand dairy cooperative Fonterra announced today that it expects lower milk deliveries in the 2017/18 season because it was too dry there. The amount of milk that the cooperative will adopt this season is now estimated at 1,525 million kilograms, compared to 1,575 million kilograms in June.
New Zealand's dairy exports fell 7% in October as the European Union gained more market share. Exports from New Zealand to the USA also fell by 10%, while exports from Australia remained stable compared to the previous year.
At the beginning of December, Fonterra had lowered the price outlook for its farmers by NZ $ 35 / kg to NZ $ 6.40 / kg. The reason for this is also the stronger competition from Europe, which puts pressure on milk prices worldwide.
The good global demand for EU milk and the dry weather in New Zealand for the time being provide no good conditions for New Zealand's dairy industry. In November, dairy production in New Zealand and Australia increased by 4 and 7%, respectively.
Text: HANSA Derivatives Trading GmbH /
