More indications of the excellent spring production season for dairy farmers in NZ with Fonterra moving to increase the transport capacity, by arranging a three month temporary increase in loading limits for its cartage fleet. After earlier talks of spilling milk to cope with this huge flow, the compromise solution that retains the value and hopefully minimal damage to rural roads is satisfying.
The next challenge recognised by John Kaczor of the US Milk Producers Council is how will Fonterra maintain it's $6.75/kgMS forecast for the oncoming season with such a large increase in production. He created doubt on this companys ability to perform to this level based on their earlier comments that they will use the increase supply to produce lower value products. And with Asian and world demand easing, and European and US production also increasing dairy farmers would be wise not to be too optimistic for price levels this coming season.
Fonterra now has more flexibility to help it manage the big increase in milk flows it is experiencing across the country. The Co-operative’s tanker fleet will be able to collect an additional 1.2 million litres of milk every day for the next three months thanks to a temporary increase in loading limits. Managing Director Fonterra Trade and Operations Gary Romano says Government agencies have given the Co-operative the go-ahead to increase the operating weight of its tankers from 44 tonne to 45 tonne until the end of year. “A one tonne increase in our operating weight means every tanker can collect an additional 1,000 litres of milk on every run. With 450 tankers on the road during peak production, that’s a big help.
“Some of the best weather conditions we’ve had in years have resulted in a wave of milk coming in earlier than forecasted. Managing all the extra milk is a huge job and it’s great that we’ve got Government agency support.” Mr Romano says that, with the support of MAF, the New Zealand Transport Agency granted Fonterra this permit in accordance with the Land Transport Act, after receiving an application from the Co-op. “We’ve got every contingency in place to get all the milk from farm to factory and this is the next step. We contacted the New Zealand Transport Agency to see if we could increase our loading limits and help ease the pressure. “The New Zealand Transport Agency has given us the permission to increase our operating weight which will help us pick up the extra volumes of milk and deliver a result that’s good for both the co-op and the New Zealand economy.”
Mr Romano says the one tonne operating weight increase is well within the design capacity of the tankers and Fonterra’s drivers are trained to handle these bigger loads. “Safety is our first priority and our drivers go through extensive training before they get behind the wheel making them well equipped to transport this additional milk.”
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