October 31, 2018 / 4:18 AM / 9 months ago

UPDATE 1-Fonterra's NZ milk production rises 6 pct in Sept on favourable weather

(Adds details on NZ milk production outlook, background)

Oct 31 (Reuters) - Milk producer Fonterra said on Wednesday its New Zealand milk production rose 6 percent in September from a year earlier due to favourable weather conditions.

The company’s Australian milk production fell 4 percent in August from a year earlier due to higher farm costs and drought across parts of the country, Fonterra said.

The world’s largest dairy exporter warned, though, that New Zealand production could take a hit as some regions were beginning to see dry conditions with the coming of summer.

“If these conditions prevail, this early season rate of growth will moderate as the season progresses,” Fonterra said.

Robust supply from top dairy seller New Zealand and other areas of the world pushed global dairy prices lower for the fifth auction in a row earlier this month.

In October, falling global dairy values prompted Fonterra to lower its 2018-2019 guidance for farmgate milk prices - what it pays farmers - for a third time in five months.

Reporting by Aditya Soni in BENGALURU; Editing by Tom Hogue

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