Fonterra moves to open online trading platform

Wednesday 9th March 2011

Fonterra is trying to open its online dairy products trading platform globalDairyTrade to outsiders and says more products will trade on the platform.

Major dairy producers Arla Foods and FrieslandCampina from Europe; California Dairies and DairyAmerica from the West Coast of the United States; and Murray Goulburn from Australia have had input into the development of draft rules that will govern multiple sellers using the platform, although no company has yet committed to offer product on the platform.

The rules are being released today so that industry participants and stakeholders have the opportunity to offer suggestions and feedback.

"All parties are keen to be open and transparent so that globalDairyTrade moves to the next phase of its development with continued wide support from the global industry," said Fonterra managing director of trade and operations Gary Romano.

The internet-based auction platform was launched in July 2008 and currently trades anhydrous milk fat, butter milk powder, skim milk powder and whole milk powder.

Fonterra will offer milk protein concentrate and rennet casein from May 17.

Romano said that when globalDairyTrade was set up it was envisaged that other sellers of dairy products would eventually join the platform.

Having other sellers would add more volume and would lead to even more reliable price discovery, he said.

NZPA

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