January 19, 2012

Fonterra's exports break record in December

Fonterra hit the highest export month in December with 246,000 tonnes of dairy products shipped overseas, boosting New Zealand's economy by NZD1.3 billion (US$1.04 billion) for the month.

In March 2011 Fonterra shipped 229,000 tonnes of product. Continued growth in global demand for dairy products combined with record milk production early on in the current dairy season has led to another spike.

In December, Fonterra exported 546 containers a day. Fonterra's exports account for more than a quarter of all NZ exports.

Fonterra Trade & Operations Managing Director Gary Romano said a good autumn and a mild winter created optimal grass growing conditions ahead of the 2011/12 dairy season.

"This helped create a wave of milk up about 10% on a daily basis during the peak flow in late September through to November.

"While conditions were good overall, farmers did face extreme challenges including a near nationwide dumping of spring snow and flooding in some regions.

"Our farmers have coped tremendously, not just with bad weather but also the record milk flow which peaked at more than 80 million litres a day," he said.

Demand for high quality dairy products is still looking strong with South East Asia, China, the Middle East and North Africa driving the growth in exports.

"Dairy is becoming increasingly important in these markets as people grow wealthier and want access to more nutritious foods," Romano said.