Fonterra site attracts US dairy marketer
Hopes are high that European dairy companies will follow DairyAmerica in signing up to join Fonterra’s once-slated online products auction platform GlobalDairyTrade.
Fonterra and DairyAmerica have announced the United States dairy marketer will start selling products on GlobalDairyTrade on October 4, in what is seen as a significant vote of confidence in the twice-monthly auction, now considered a barometer of world commodity prices.
Its price achievements are also the settlement prices for the New Zealand stock exchange’s dairy futures market.
The addition of DairyAmerica is expected to bring more transparency and better price discovery.
GlobalDairy general manager Paul Grave said it was also hoped European firms would now sign up.
DairyAmerica, whose member companies represent about 45 per cent of all non-fat and skim milk powders produced in the United States, said it would start by selling skim milk powder products with other lines added over time.
Fonterra’s main product offering on GlobalDairy is whole milk powder.