Fonterra decided to reduce the quantity of dairy products offered on its bi-weekly internet sale. This follows its announcement of a reduction in the estimated production for the 2014/2015 season by 3,2% from its previous estimate. The main reasons for the expected lower production are current drier conditions and producers changing to less intensive production methods to curb costs in lieu of the estimated 34% lower expected pay-out. According to MPO economist Dr Koos Coetzee, the Fonterra decision may result in a further increase in global dairy product prices at the next sale. Prices already showed a positive trend at the last three Fonterra sales.
Published on Tuesday, 3rd February 2015 - 10:14
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