New Zealand co-op Fonterra said it expected lower milk collection for the 2017/18 season, hurt by dry weather sweeping the country especially in the South Island. Fonterra said in a statement it was reducing its milk collection forecast for the season to 1,525m kilograms of milk solids (kgMS), from a June forecast of 1,575m kgMS. Earlier this month, Fonterra reduced its forecast payout to farmers for the current season by NZ$0.35 to NZ$6.40 per kgMS (28.5c/l), highlighting the downward pressure the step-up in EU production was creating on global dairy prices.