Fonterra breaks export record

Fonterra has announced it exported record volumes for the month of December 2015. Data confirms the new record for a single month’s volume, with more than 300,000 MT shipped to its global markets. December’s volume was approximately 10% higher than Fonterra’s previous record month in December 2014.

Kelvin Wickham, managing director at Fonterra, says, “This is an excellent achievement by our sales and logisitcs teams and it is gratifying to finish 2015 on a high with this record export volume. We have seen unprecedented global voltility due to geopolitical events over the past year. The dairy market has been a tough environment globally, so we are pleased to achieve record export volumes despite the challenges.”

He also explains that the new record reflected the ongoing successful performance of Fonterra’s direct-to-customer ingredients, consumer and foodservice sales despite the tough global market environment.

The new benchmark would be difficult to surpass as reduced milk volumes began to impact on the Co-operative’s production levels. Fonterra is forecasting a year-on-year reduction of milk volumes by at least six per cent this season as farmers responded to the low milk price environment and dry conditions impacted parts of New Zealand.

Wickham adds, “An increased portion of product is being sold through bilateral customer agreements for a premium on prices achieved on GDT. Ingredients inventory levels for the first quarter were in line with the same period last year.”