November 6, 2013

Fonterra's dairy prices slide, volumes jump at auction

The international milk prices of New Zealand's Fonterra Co-operative Group fell for the second consecutive time in a month, while volumes jumped in the latest auction held.

Fonterra's Global Dairy Trade (GDT) Price Index, formerly the GDT-Trade Weighted Index, fell 1.8%, with an average selling price of US$4,797/tonne, in the auction held on Tuesday (Oct 29).

The slide followed a 1.9% fall in the previous sale, which is known for brands such as Anchor, Anlene and Fresh n' Fruity. A total of 49,304 tonnes was sold, up 14% on the previous auction, Fonterra said.

The auctions are held twice a month with the next one due on November 19. The auction results can affect the New Zealand dollar as the dairy sector is a major export earner for the country and generates more than 7% of gross domestic product.

The New Zealand milk co-operative, owned by around 10,500 farmers, controls nearly a third of the world dairy trade.