Fonterra, the world’s largest dairy exporter, has had a drop in its milk collections for July.

The New Zealand co-op totalled 16.3m kg MS last month, a drop of 1.4% when compared with July of last year.

The 2016/17 season started in June and to date collections for this season now stand at 26.3m kg MS. This is also a decrease of 1.4% from the 26.6m kg MS collected in the first two months of the 2015/16 season.

In New Zealand’s North Island, collections were also down. In the first two months of this season, collections totalled 15m kg MS, a fall of 0.8% compared with the same time last year.

Production on the South Island followed the downward trend, totalling 1.m kg MS, a decrease of 7.7%.

Further dividend

There was an even greater drop in Fonterra’s Australian milk collection. July was the first month of the Australian season and production fell to 6.1m kg MS, a 22% fall compared with 2015.

The co-op also announced this week that it will pay a further 10c/share of its previously announced 2015/16 forecast dividend of 40c/share.

Fonterra chair John Wilson said the co-op’s intention was to always declare a further dividend in August, subject to financial performance supporting the forecast earnings per share range of 45c to 55c.

Fonterra to pay a further dividend

Milk production slowing down in New Zealand

There was a drop in collections for New Zealand-based dairy co-op Fonterra.