January 11, 2022
Fonterra revises milk collection forecast
Fonterra Co-operative Group Limited revised on January 11 the forecast for its 2021/22 New Zealand milk collections to 1,500 million kilogrammes of milk solids (kgMS), down from its opening forecast of 1,525 million kgMS.
Fonterra chief executive Miles Hurrell said varied weather and challenging growing conditions across many parts of New Zealand earlier in the season saw actual milk collections down on the same time last year.
"We were expecting conditions to improve over the Christmas-New Year period, but this has not eventuated," Hurrell added. "As a result, we have revised our 2021/22 forecast down 1.6% to 1,500 million kgMS."
In response to the lower milk supply, Hurrell explained that, at this stage, no change is needed to the volume of product the cooperative is offering on the Global Dairy Trade (GDT) platform.
"Due to the high demand for off-GDT sales, we had already reduced the volume we were offering on the GDT platform earlier in the season," Hurrell said. "We will continue to monitor the situation and carefully manage our sales both on and off-GDT."