Increased milk production is putting pressure on Fonterra's milk collection, manufacturing and the supply chain.
In an email to farmers this week, the co-operative's trade and operations managing director Gary Romano said it had been a strong spring and, if it continued, it would mean one of the biggest year-on-year increases in milk production for "a number of years".
A good autumn followed by a reasonable winter generally throughout the country had meant that this week Fonterra exceeded last year's peak three weeks early. During the last week, milk collection was on average up more than 15% on a daily basis throughout the country compared with last year. In the lower North Island, 19% more milk had been collected than for the same week last year.
While Fonterra had the tankers to collect the forecast milk, one problem at any of the sites could have a big effect and could push the schedule back and result in late-off farms.
In cases where volumes exceeded estimates, it meant more partial collections and Fonterra was "very conscious" of the disruption that was causing on-farm.
Across New Zealand, Fonterra had been averaging 40 to 150 late-off farms across its 10,000 farmers over the past few weeks.
The problem was also being amplified by some of the co-operative's competitors cancelling their daily DIRA milk on occasions and Fonterra was having to now find somewhere to process that milk.
The co-operative was still three weeks from the traditional peak, which usually came around October 20.
