FSF
10/09/2015 08:30
FORECAST
PRICE SENSITIVE
REL: 0830 HRS Fonterra Shareholders' Fund (NS)
FORECAST: FSF: Fonterra Milk Volume forecast
10 September 2015
FONTERRA MILK VOLUME FORECAST
Fonterra Co-operative Group Limited has maintained its milk volume forecast
for the 2015-16 season at 1,589 million kgMS, which is in the range of 2-3
per cent lower than the amount collected last season.
Fonterra is required under the Dairy Industry Restructuring Act to update its
current season forecast milk volumes by early September.
Group Director Co-operative Affairs Miles Hurrell said although Fonterra had
forecast a 2-3 per cent decline in volumes there was evidence that farmers
were pulling back on production, which could lead to a further downward
revision of forecast volumes as we move through the season.
"Farmers are responding to the lower forecast Farmgate Milk Price by
returning to more traditional farming practices. They are reducing the use of
feed supplements, and lowering stocking rates per hectare as they concentrate
on utilising pasture.
"Market data from several independent sources show that cows are being culled
at higher rates than last season while many of our farmers are also providing
early advice that they are expecting significant year on year volume
reductions.
"In addition, currently our daily milk collection average is lower than for
the same period last year," said Mr Hurrell.
"However, it is still early in the season, and any forecast at this point is
very dependent on weather conditions, which have so far been poor for
production.
"Given these variable factors, we have decided to maintain our current
forecast milk volume at this very early stage of the season," said Mr
Hurrell.
- ENDS -
For further information contact:
Andrew Luxmoore
Fonterra Communications
Phone: 021 221 8358
24-hour media line
Phone: +64 21 507 072
End CA:00269898 For:FSF Type:FORECAST Time:2015-09-10 08:30:08
