Drought compels Fonterra to end season early

Drought has closed most of Fonterra's 86 dairy processing plants around New Zealand this season several weeks earlier than usual.

The dry weather has pinched supply to 70% of Fonterra's factories - most north of Taupo - forcing them to stop processing before the usual winter shutdown for maintenance, said general manager milk supply Tim Deane.

However, the farmer-owned co-operative and New Zealand's biggest company, which processes 92% of the country's raw milk, said national milk production for the 2009-10 season would still be a fraction ahead of last season's collection of about 14 billion litres of milk - thanks to South Island production.

Drought in the upper North Island - Northland and Waikato - had cut daily milk production for this time of the year back 45-55% on last season, Deane said.

Daily milk production in the lower North Island was 12-13 % behind last season.

Production in the Nelson and Southland dairying areas was starting to lag behind last year but Canterbury milk output was booming, about 10% ahead of last season. Other parts of the central South Island were still producing ahead of last year.