Dry Weather Crimps Fonterra's NZ, Australia Milk Output
Dairy group Fonterra on Thursday said its New Zealand milk production fell 10% in April from the year before as dry weather hit farms.
The world's biggest dairy exporter also said in a statement that its Australian milk output dropped 10% in March from a year earlier amid continued drought and high farm costs in that country.
The group's dairy exports from New Zealand increased by 27% in March on-year, buoyed by demand from key Asian markets, although its exports from Australia fell 3% in the same month.
Fonterra earlier in May cut its annual earnings guidance and said it would close a more than 100-year old facility in Australia as dry weather and increased costs continued to undermine its operations.
Shares of Fonterra on Thursday traded as much as 2.5% lower to touch a record low, on track for their third consecutive session of losses.