Fonterra milk volume forecast

Fonterra Co-operative Group maintains its milk volume forecast for the 2015-2016 season at 1, 589 million kg, which is a 2-3% drop in collection compared to last year. Despite a decline in volumes there is evidence that farmers are pulling back on production, which could lead to a further downward revision of forecast volumes throughout the season.

Miles Hurrell, group director co-operative affairs, comments, “Farmers are responding to the lower forecast Farmgate Milk Price by returning to more traditional farming practices. They are reducing the use of feed supplements, and lowering stocking rates per hectare as they concentrate on utlising pasture. Market data from several independent sources show that cows are being culled at higher rates than last season while many of our farmers are also providing early advice that they are expecting significant year on year volume reductions.”