Fonterra significantly cuts New Zealand growth forecast

Published 18 October 17

Fonterra* has slashed its forecast for milk collections in New Zealand from 3.2% growth down to 0.9% growth for their 2017/18 season. In litre terms, the forecast has been reduced from 17,382 million litres to 16,995 m litres. This reduction comes after poor weather conditions affected production in August and September, with milk collections for each down 2% compared to the same months in 2016. Prior to this latest release forecasts for the season had ranged from 1.5%-3.5% growth, so this downwards revision highlights the current uncertainty around New Zealand.

For now, this news does not appear to have immediately affected the markets, as the 17 October GDT auction still resulted in a 1% decrease in price index.

2017.10.19 fonterra

 

*Fonterra collects around 85% of New Zealand milk