New Zealand dairy giant Fonterra has reported a 0.7 per cent rise in milk solids production in September due to favourable temperatures and pasture conditions across much of the country.
Liquid milk production fell 0.7 per cent for the same period, a difference Fonterra said indicates improved pasture quality from September last year.
Milk solids are the amount of fat and protein contained in the liquid milk supplied to Fonterra.
The world’s largest dairy exporter said its domestic milk collection for September was 179.1 million kilograms of milk solids (kgMS), down 0.1 per cent on the same month last season.
Fonterra’s Australia collection fell 15.2 per cent to 10.7 million kgMS due to high farm input costs, poor seasonal conditions, reduced herd numbers and “intense competition” for milk.
Australia dairy producers are struggling amid three years of prolonged drought conditions.
Chinese dairy import volumes increased 4.7 per cent in August amid strong demand for infant formula and skim milk powder, Fonterra said.
China makes up most of Fonterra’s market, as buyers in the mainland prefer internationally made whole milk powder and infant formula over their local counterparts.