June 23, 2011

Fonterra remains world's top milk processor

Fonterra has been ranked the world's top milk processor for 2011 with an intake of 20.5 million tonnes, equivalent to a 3% market share of world milk production.

According to a report by the International Farm Comparison Network, Fonterra increased its share from 2.7% in 2009, when it also ranked No.1, and led Dairy Farmers of America and Nestle, which had 2.5% and 2.2% respectively.

Good milk prices could lead to global growth of up to 20 million tonnes a year in 2011 and 2012, the network said.

The ANZ Commodity Price Index for dairy products fell in April and May but was still at its highest level since July 2008. The network said that between 2005 and 2010 world milk production grew on average by 11.7 million tonnes a year.

Agricultural market analyst NZX Agrifax said New Zealand milk output in April was 31% ahead of last year on a milksolids basis.

The increased output reflected excellent conditions for pasture growth during the autumn.