FCG
29/01/2015 14:08
GENERAL
PRICE SENSITIVE
REL: 1408 HRS Fonterra Co-operative Group Limited
GENERAL: FCG: Fonterra Milk Volume Forecast Reduced
29 JANUARY 2015
FONTERRA MILK VOLUME FORECAST REDUCED
Fonterra Co-operative Group Limited has reduced its milk volume forecast for
the 2014-15 season to 1,532 million kgMS, reflecting the impact of dry
weather on production in recent weeks.
The new forecast is 3.3 per cent lower than the 1,584 million kgMS collected
last season. The previous milk volume forecast, made in December last year,
was 1,584 million kgMS.
Group Director Co-operative Affairs Miles Hurrell said daily milk production
was now 6.1 per cent lower than at the same time last season, as farmers
appear to be using more traditional practices to manage their farm businesses
with the low payout forecast.
"In the first half of the season, excellent pasture conditions resulted in
milk volumes being higher than the previous season.
"The situation has changed significantly over the course of this month.
"In some regions where pasture quality has declined markedly since
mid-January, we are seeing some farmers drying off cows early. There also
appears to be a reduction in feed supplements, as the economics do not
support their widespread use this season," said Mr Hurrell.
Fonterra has confirmed that it can meet all current sales commitments.
However, in light of the reduced milk volume forecast, it is planning to
reduce the quantity of product offered on the GlobalDairyTrade auction
platform, and via direct sales channels.
-ENDS-
For further information contact:
Abhy Maharaj
Director Equity Markets
Phone: +64 21 879 458
End CA:00260131 For:FCG Type:GENERAL Time:2015-01-29 14:08:05
