Fonterra will double the number of online milk powder auctions on their trading platform globalDairyTrade to twice a month starting in Sptember 2010.

Kelvin Wickham, Fonterra managing director Global Trade, said the increase in frequency was a significant milestone. “This will add more depth and credibility and even more transparency around pricing trends. With a more frequent pricing signal, market participants will be able to have even more confidence they have up-to-date information on the current balance of supply and demand.”

GlobalDairyTrade has grown from 107 to 280 qualified bidders from 56 countries since inception, with between 100 and 140 active bidders participating in each event and about 65 percent of bidders joining the event win product.

In addition, Fonterra also announced that in August 2010 it will expand its trading range with the addition of buttermilk powder and new specifications for SMP (high heat / high stable) and AMF (1,000kg bulk packs).

Fonterra has so far sold 500,000 metric tons worth $US1.5 billion on the platform. With the addition of buttermilk power, it now trades four products and is forecasted to sell 530,000 metric tons of product over the next year, which represents nearly a quarter of it’s New Zealand production.

Source: National Business Review

http://www.nbr.co.nz/