November 15, 2011 / 7:00 PM / 9 years ago

Dairy prices rises in NZ Fonterra's auction

WELLINGTON, Nov 16 (Reuters) - International milk prices rose for the second time in three auctions, New Zealand’s Fonterra Cooperative Group, the world’s biggest dairy exporter, said on Wednesday.

Fonterra’s Global Dairy Trade-Trade Weighted Index, which covers a range of 30 products and contract periods on offer, rose 2.6 percent, with an average selling price of $3,617. That followed a 1.2 percent fall in its previous auction.

The index has risen only twice in the past four months.

Among the main products offered there were price rises for anhydrous milk fat, milk protein concentrate, butter milk powder, cheddar, skim milk and whole milk powder.

The only decline was for rennet casein.

Full details of the auction are at:

Fonterra holds two auctions a month, with the next one on Dec 6.

Last month, the co-operative Fonterra cut its forecast payout to farmer suppliers for the current production season by up to 7 percent to between NZ$6.70 and NZ$6.80, comprising a milk payment of NZ$6.30 a kilo of milk solids and an additional 40 to 50 NZ cents from operational activities. See

The payout for the 2010/11 season was a record NZ$8.25 a kilo of milk solids on record production and sales.

Fonterra is owned by about 10,500 farmers and controls around a third of the world’s dairy exports, generating more than 7 percent of New Zealand’s gross domestic product.

Gyles Beckford

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