Average prices of dairy products fell for the fourth sale in a row in Fonterra's latest online auction, tracking a broader decline in global commodity prices.
The GDT-TWI Price Index fell 1.3 per cent to US$3,716 a metric tonne, according to results posted on the globalDairyTrade auction website. That's thelowest since the December sale.
Prices at the auction are weakening as Fonterra faces increased scrutiny of its charging in the domestic market, with a team of government official reviewing the Raw Milk Regulations. The Commerce Commission yesterday passed on seeking to have local prices regulated, pending the outcome of the review.
The Thomson Reuters/Jefferies CRB Commodity Index of 19 commodities is at its lowest in almost a month.
Skim milk powder fell 1.4 per cent to US$3,479 a tonne and whole milk powder dropped 0.3 per cent to US$3,474 a tonne. Anhydrous milk fat fell by an average 7.2 per cent to US$4,297 a tonne and milk protein concentrate rose 1.7 per cent to US$5,632 a tonne.
Rennet casein fell 4.6 per cent to US$9,498 a tonne. Butter milk powder rose 3.3 per cent to US$3,319 a tonne.
There were 116 winning bidders from 152 participants over 10 rounds. The platform has 355 qualified bidders, up from 348 in the last auction.
DairyAmerica, a marketing company for four US dairy cooperatives, will start selling milk products through the GlobalDairyTrade platform in October.
More outside suppliers may follow, as Fonterra has held talks with Europe's Arla Foods and FrieslandCampina, and Australia's Murray Goulburn.
"Looking forward, the company would be managing a significant proportion of its export business through GlobalDairyTrade, rather than through distributor and reseller arrangements," DairyAmerica chief executive Rich Lewis said.
Fonterra expanded its own range of products sold via GDT this year to include milk protein concentrate (MPC), rennet casein and cheese from July 19.
It also sells anhydrous milk fat, butter milk powder, skim and whole milk powder.
