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Americas: Fonterra finds record export volumes in December

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Fonterra Co-operative Group confirms new record for a month’s volume, with more than 300,000 mt shipped to its global markets in December 2015.

The month’s volume was approximately 10% higher than Fonterra’s previous record month in December 2014.

“We have seen unprecedented global volatility due to geopolitical events over the past year,” said MD for global ingredients, Kelvin Wickham.

“The dairy market has been a tough environment globally, so we are pleased to achieve record export volumes despite the challenges.”

He added that the new benchmark would be difficult to surpass as reduced milk volumes began to impact on the Co-operative’s production levels.

Fonterra is forecasting a year-on-year reduction of milk volumes by at least 6% this season as farmers responded to the low milk price environment and dry conditions impacted parts of New Zealand.

Since August 2015, the co-operative has reduced the amount of whole milk powder it expects to offer on the GlobalDairyTrade (GDT) platform over the next 12 months by 146,000 mt in response to a change in product mix away from base milk powders and continued successful contracting and demand through other sales channels.

“An increased portion of product is being sold through bilateral customer agreements for a premium on prices achieved on GDT,” said Wickham.

“Ingredients inventory levels for the first quarter were in line with the same period last year.”