New Zealand’s Fonterra said on Thursday the multinational dairy co-operative’s production forecast for this season stands at 1.55 billion kg of milk solids, up 3 percent from the previous season.
As one of New Zealand’s largest company, Fonterra is responsible for about 30 percent of the world’s dairy exports.
“We are seeing really good demand out of China, which is going to support it,” the company’s Interim Chief Executive Miles Hurrell told local media, adding favorable growing conditions had boosted production but that the 3-percent forecast still stood.
“Europe was holding down a bit of skim milk powder stock, and most of that is exhausted now, so you are starting to see that play out through the shortage of supply,” Hurrell said, adding hot weather in Europe was helping to drive up skim milk powder prices.
Rural lending specialist Rabobank said continued good weather across much of New Zealand has seen feed reserves aplenty and milk production volumes still strong.
“While November 2018 milk collections saw modest year-on-year growth of one percent, we anticipate stronger December 2018 growth given that the tail end of 2017 was hot and milk supply dipped,” it said.
Source: Xinhua Net
