Fonterra's online trading platform globalDairyTrade is to double the number of online milk powder auctions, with confirmation today they will soon be held twice a month.Trading manager CRA International will start holding the events twice a month from Sep
Fonterra’s online trading platform globalDairyTrade is to double the number of online milk powder auctions, with confirmation today they will soon be held twice a month.
Trading manager CRA International will start holding the events twice a month from September.
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% of bidders joining the event win product.
Fonterra also announced that it will add a new product at the start of August - buttermilk powder - and two new specifications of existing products to globalDairyTrade.
Fonterra has so far sold 500,000 metric tonnes 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 tonnes of product over the next year - about 24% of Fonterra’s New Zealand production.
“With globalDairyTrade, Fonterra has taken a leading role in developing ways to manage the new price volatility in the markets for dairy products,” Mr Wickham said.
In the most recent trading event, held at the start of this month, globalDairyTrade recorded a dip on its new trade weighted index of 3.5%.
