News: UPDATE 1-Fonterra's October milk production rises 3 percent on favorable weather

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    (Adds China import figures, global dairy prices)

    Nov 21 (Reuters) - New Zealand dairy group Fonterra (FSF) (FCG) said on Tuesday its milk output in New Zealand rose 3 percent during the peak production month of October as wet weather subsided towards the end of the month.

    "New Zealand milk supply generally peaks in October, however wet weather across the country for most of spring meant the peak was later and impacted volumes," Fonterra said in a statement.

    For the 12 months to October, milk production was flat compared with the same period last year.

    The world's largest dairy exporter said shipments to China continued to be strong, rising 34 percent in September from the same period last year.

    Milk production at Fonterra's smaller Australian operations in September fell 1 percent due to poor weather and reduced herd size.

    Global dairy prices, which rose in the second quarter on strong global demand, have since had a bumpy ride due to volatile global demand and fell to a seven-month low in a recent auction.

    Fonterra said total New Zealand dairy exports fell 7 percent in September while Australian dairy exports slipped 3 percent.

    Shares of the dairy giant were trading up 0.5 percent at 0054 GMT, compared with a 0.5 percent decline in the broader market (nz50).

 
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