Dairy company Fonterra (ASX:FSF) has recorded a 6 per cent drop in milk collection across New Zealand for the seven months to December 2017 compared to the same period last season, due to dry weather across the country.
However, milk collection in Australia increased 27 per cent compared to the last season, with growth driven by new co-operative suppliers and strong seasonal conditions across Australia.
Forecast milk collection in New Zealand for the 2017-2018 season was lowered by 3 per cent as a result.
The north island was 8 per cent behind the last season due to dry, hot weather causing a decrease in production, with not enough rain to offset the conditions, and the south island was 1 per cent behind last season.
The company said production was impacted by dry weather conditions in New Zealand which impacted soil moisture and pasture quality.
Shares in Fonterra (ASX:FSF) closed 1.31 per cent lower yesterday at $6.02.