Fonterra internet sales reach $US1b

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Sales on Fonterra's internet-based trading platform globalDairyTrade have reached $US1 billion ($NZ1.36b) over the 19 trading events since the system was launched in July 2008.

Fonterra today said the milestone reinforced globalDairyTrade's establishment as the global market place that discovered a reliable and trusted market reference price for dairy products.

With the recent addition of anhydrous milk fat, and with skim milk powder starting early this year, Fonterra said its annual sales on the platform would exceed 400,000 tonnes of product, or around 20 percent of its 2008/2009 production.

GlobalDairyTrade manager Paul Grave said more than 250 bidders from 56 countries were now registered for the trading events.

It was not uncommon to have more than 100 bidders taking part in an event, which was a good level of liquidity in the relatively small dairy market, he said.

Criticism directed at globalDairyTrade a year ago had now largely disappeared, and had been largely due to the fact the platform was launched just as the global financial crisis began.

Fonterra said it was open to other sellers taking part on the trading platform.

"Having other sellers participating would give an added level of liquidity and therefore, credibility," Fonterra managing director, global trade, Kelvin Wickham said.

- NZPA