January 20, 2005

New Zealand milk production drops 5%

New Zealand's poor spring and summer weather has caused milk production to drop by five percent.

Dairy co-operative Fonterra says the cooler weather is affecting milk flows throughout the country, and no dramatic weather improvement for now could even help make up for lost production this season.

It says the downturn means Fonterra will be manufacturing 75 thousand tons less dairy products, a significant shortfall.

This, it says, will contribute to the already tight global milk supplies.