Drought conditions and high farm costs led to a 10 per cent drop in Fonterra's Australian milk output in March from a year earlier, the dairy group says.
Dairy group Fonterra says its Australian milk output dropped 10 per cent in March from a year earlier amid continued drought and high farm costs.
The world's biggest dairy exporter also said in a statement its New Zealand milk production fell 10 per cent in April from the year before as dry weather hit farms.
The group's dairy exports from New Zealand increased by 27 per cent in March on-year, buoyed by demand from key Asian markets, but exports from Australia fell three per cent in the same month.
Fonterra earlier in May cut its annual earnings guidance and said it would close a more than 100-year old facility in Australia as dry weather and increased costs continued to undermine its operations.
Fonterra shares on the NZX traded as much as 2.5 per cent lower on Thursday to touch a record low, on track for their third consecutive session of losses.