Fonterra's dip in June milk collection not as big as previously thought
The Auckland-based cooperative collected 9.9 million kilograms of milk solids in June.
Fonterra Cooperative Group [NZX: FSF] says the decline in milk collection last month wasn't as big as previously thought because the extra day of a leap year mucked up its modelling.
The Auckland-based cooperative collected 9.9 million kilograms of milk solids in June, but revised down the year-earlier June collection to 10 million kgMS, meaning the monthly decline was only 1.4% and not the 10% drop it reported earlier this month.
"This error was caused by a modelling inaccuracy resulting from the change in days with 2016 being a leap year," it said.
Fonterra's North Island collection was revised to a 0.5% increase to 7.6 million kgMS from a 6% fall, while the South Island collection was changed to a 7.2% decline to 2.3 million kgMS from a 22% drop.
Dairy prices were steady at this week's GlobalDairyTrade auction with the index price at $US2336, while whole milk powder prices rose 1.9% to $US2079 a tonne. An expanding global supply has kept pressure on prices, which have stretched local farmers' balance sheets as they face another year of operating below the breakeven farmgate payout.
Units in the Fonterra Shareholders' Fund increased 0.2% to $5.54 and have dropped 7.7% so far this year.
(BusinessDesk)
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Paul McBeth
Fri, 22 Jul 2016
Fri, 22 Jul 2016
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Fonterra's dip in June milk collection not as big as previously thought
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