NZPA

Fonterra online auction prices up 13.7 percent

Wednesday November 4, 08:53 AM

Dairy farmers are looking forward to a happier New Year after 2010 prices lifted an average of 13.7 percent in Fonterra's latest monthly online dairy auction to $US3437 ($NZ4775) a tonne, up from $US3022/tonne a month ago.

The average prices paid at the globaldairytrade auction have now lifted 87.9 percent over four months, with the compounding effect of lifts of 25.8 percent (August), 24.2 percent (September), 5.7 percent (October), and 13.7 percent (November). But the price is still markedly down on the record levels of nearly $US5000/tonne which whole milkpowder (WMP) fetched on spot markets in 2007, until they plunged 15 months ago.

In the first contract period, for January delivery, the per-tonne prices set for WMP were $US3352 (from New Zealand and Australian ports), up 11 percent on last month. For regular WMP, the winning bids were $US3345 (from NZ ports) and $US3270 (from Australian ports), while instant powder rose to $US3395 (NZ) and $US3320, and UHT powder hit $US3420 (NZ).

February-April 2010 prices lifted 12.8 percent to $US3393/tonne, and for May to July, it rose 20.8 percent to $US3684.

Fonterra started auctioning WMP in July last year .

Fonterra today introduced a new product to the auctions, anhydrous milkfat (AMF) -- effectively industrial-grade butter -- which fetched prices of $US4809 (January) $US4728 (February-April) and $US4735 (May-July).

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