Fonterra’s 26 sites processed 7608 million litres of milk last Wednesday, October 27, setting a new record for peak production.
Gary Romano, Managing Director – Fonterra Trade and Operations, says the new record is three million litres up on last year’s record peak.
“It’s a real credit to our teams and our plants that we processed all the milk so smoothly.
“It was a slow start to the season with wet weather in the Waikato and Taranaki and snow in the South Island. However, this recent spell of fine weather has seen a sharp increase in production on-farm. . .
“Since Fonterra was formed, we’ve increased our processing abilities by investing in new technology and plants such as ED4 – the most efficient powder plant in the world – to ensure we can keep ahead of milk production increases in an efficient and sustainable way.
“We’ve handled this growth while maintaining a strong focus on the quality of our products and the health and safety of our people and we’re setting internal quality benchmarks in a number of areas as we continue to focus on improving our performance.
Mr Romano said season-to-date, overall milk production was now slightly ahead of last year but, with the season only a third of the way through, it was too early to talk about actual production figures for the year.
Prices were stable in this morning’s globalDairy Trade auction with no change in the trade weighted index.
The price of whole milk powder was even at $3495 a tonne; skim milk powder dropped 1.1% to $3,021; anhydrous milk fat was up 4.5% to $5,394 and butter milk powder was down 1.8% to $3,011.
In a newsletter to shareholders Fonterra chair Henry van der Heyden said CWT (Co-operatives Working Together) in the USA have stopped culling cows in favour of export subsidies.
Cheese prices are likely to come under pressure as a result of subsidised product from there but butter is still in tight supply in the USA and Europe.
Production in Australia has been hit by wet weather in September.