In the three months to the end of August, collection in the North Island was down 5% and in the South Island down 1.6%, Fonterra reported in the September publication of Global Dairy Update.
But June, July and August contributed only 8% of the total milksolids production for NZ in a full season.
In August the North Island was down 6% and the South Island 1%.
Fonterra said the milk supply built quickly in September and the peak daily flow would occur in mid-October.
That peak was expected to be about 85million litres a day, or seven million kilograms of milksolids, the lowest since October 2012.
Australia’s new season’s milk collection was recovering after a drop late last season when farmers dried off early.
“We have new farmer-suppliers moving to Fonterra and promising early spring conditions.”
Fonterra predicted its total collection in NZ this season would amount to 1523m kilograms of milksolids, down 3% on last season, which was in turn down 3% on the season before.
“Over the past two seasons, farmers have reduced stocking rates and supplementary feeding to help lower costs.”
European milk production also continued to slow, with June down 2% compared to the previous June, the first month-on-month reduction since March 2015.
However, total European milk production in the year to the end of June was up 4% and in the United States it was up 1% in the year to July.
In Europe, increased cow culling, less supplementary feeding and poor weather had contributed to June decreases of 7% in the United Kingdom, 3% in France and 1% in Germany.
In Australia, July production was down 10% as farmers were heavily affected by the reduction in prices to align with world dairy prices.
The moderation of milk production increases in the EU and US and the falls in production in NZ and Australia were underpinning the rise in world dairy prices as demand and supply rebalanced.
European exports were up 12% in the 12 months to May, including a 6% increase in May.
Fluid and fresh dairy products were up 27%, cheese up 12% and whey powder up 11%.
Fonterra also reported its weighted average price for all dairy products achieved in the GlobalDairyTrade auctions rose from US$2400 a tonne to $3000 over the past two months, a rise of 25%.
At the most-recent GDT auction, on September 20, Fonterra’s average price achieved was $3014 and it sold 34,200 tonnes, bringing the quantity sold financial year-to-date since August 1 to 140,000 tonnes.
Nearly 9% less volume sold through GDT than over the same two months in 2015.
Dairy imports in the year to May rose 10% in Latin America and 2% in Asia, excluding China.
China’s imports were up 27% in the year to July. Fluid and fresh dairy and cheese were both up 37% in volume.
