Fonterra Reports Strong Milk Production Growth for Season to Date
Source: DairyNews.today
New Zealand dairy giant Fonterra reported a nearly 5% increase in season-to-date milk collection compared to last year, with October's peak spring production 2.5% higher than the same month in 2023.
The co-operative collected 205 million kilograms of milk solids (kg MS) in October, translating to an average of over 80 million litres daily, according to its November Global Dairy Update. Fonterra has yet to release the specific volume for its peak daily collection in late October.
Based on the current advance payment rate of NZ$7.20 per kg MS for October's production, Fonterra disbursed approximately NZ$1.5 billion to farmers. Total season-to-date milk collections have reached 512.2 million kg MS, equating to NZ$3.7 billion in farmgate payouts.
National and International Comparisons
Industry-wide figures from the Dairy Companies Association of New Zealand (DCANZ), published by NZX Dairy Insights, show national milk production reached 261.5 million kg MS in October, with Fonterra accounting for 78.5%. Season-to-date, New Zealand has produced 654 million kg MS, marking consistent growth. National production increased 2.8% in October, following gains of 5% in September and 9–10% in July and August.
Fonterra Australia also reported growth, with production up 1.4% in September and 3.4% for the 12 months ending September. In contrast, milk output in Europe and the United States has remained largely flat over the past year.
Regional Variations and Outlook
Favourable weather conditions in New Zealand’s North Island drove a 5.9% rise in milk production season-to-date, significantly outpacing the 2.6% increase in the South Island. Growth in the southern region was particularly sluggish in Southland.
With steady gains in domestic and regional milk production, Fonterra's performance reflects broader positive trends in the global dairy market. However, static production levels in Europe and the U.S. underscore potential challenges in international supply dynamics.
Based on the current advance payment rate of NZ$7.20 per kg MS for October's production, Fonterra disbursed approximately NZ$1.5 billion to farmers. Total season-to-date milk collections have reached 512.2 million kg MS, equating to NZ$3.7 billion in farmgate payouts.
National and International Comparisons
Industry-wide figures from the Dairy Companies Association of New Zealand (DCANZ), published by NZX Dairy Insights, show national milk production reached 261.5 million kg MS in October, with Fonterra accounting for 78.5%. Season-to-date, New Zealand has produced 654 million kg MS, marking consistent growth. National production increased 2.8% in October, following gains of 5% in September and 9–10% in July and August.
Fonterra Australia also reported growth, with production up 1.4% in September and 3.4% for the 12 months ending September. In contrast, milk output in Europe and the United States has remained largely flat over the past year.
Regional Variations and Outlook
Favourable weather conditions in New Zealand’s North Island drove a 5.9% rise in milk production season-to-date, significantly outpacing the 2.6% increase in the South Island. Growth in the southern region was particularly sluggish in Southland.
With steady gains in domestic and regional milk production, Fonterra's performance reflects broader positive trends in the global dairy market. However, static production levels in Europe and the U.S. underscore potential challenges in international supply dynamics.
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