Booming South Island milk production will prop up Fonterra’s national collection this year as the North Island wilts from lack of rain in the season’s home straight reports Business Day. The giant global dairy exporter, which collects 92 per cent of the country’s milk and earns 25 per cent of NZ’s export returns, said with the end of the 2009-10 season approaching, South Island milk production was 9 per cent up on last season, while the North Island was 1 per cent behind.

Overall, Fonterra suppliers’ national milk production is currently around 2 per cent ahead of last year’s 1.3 billion litres, said Fonterra general manager, milk supply, Tim Deane. But for some North Island dairy farmers hoping to use Fonterra’s projected $6-plus/kg milksolids payout this season to recover from previous drought and last year’s recession-squeezed payout, that overall 1 per cent North Island dip skates over some ugly figures.

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