Milk production in the Fonterra system fell away more than the company was expecting in April as the drought in the North Island bit harder.
The company only collected 36,000 tonnes of milk solids in the North Island in April 2013, less than half the 76,000 tonnes it collected in April 2012.
However, in the South Island the decline was much less severe, 46,000 tonnes were collected in April this year, down from 50,000 tonnes in the same month a year ago.
These declines mean't that the 2012-13 season has now fallen behind the previous one by 0.5%, with still one month to go.
"Consistent rainfall across the country in April has helped to improve on farm conditions, but this has been too late to stop milk production falling below last season’s record levels as many suppliers have already stopped producing for the season," the company said in its May Global Dairy Update.
The declines so far this season mean this will be the first season since that milk production has fallen for Fonterra.
The New Zealand dairy industry totals will be released by DCANZ in about a week.
| 2012-13 Season | Jun-12 - Apr-13 | Jun-11 - Apr-12 | change |
| tonnes | tonnes | ||
| North Island m/s | 871,000 | 919,000 | -5.2% |
| South Island m/s | 543,000 | 502,000 | +8.2% |
| ============= | ======= | ======= | ==== |
| Total Fonterra m/s | 1,414,000 | 1,421,000 | -0.5% |
At the same time Fonterra released details of how the currency is affecting them.
The chart below shows the spot price of the NZD/USD rate over the past three years. The green line is the Fonterra Average Currency Rate (FACR). It shows Fonterra's foreign currency rate adjusted for the gains and losses arising from its currency hedging program.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.