CHICAGO, June 9 /PRNewswire/ -- Fonterra has announced that from September 2010 the globalDairyTrade trading manager, CRA International (CRA), will increase the frequency of trading events to twice a month.
Kelvin Wickham, Fonterra Managing Director Global Trade, said the increase in frequency was a significant milestone that highlighted globalDairyTrade's success as an online trading platform and as a credible price discovery mechanism. "This will add more depth and credibility and even more transparency around pricing trends," Mr. Wickham said. "With a more frequent pricing signal, market participants will be able to have even more confidence they have up-to-date information on the current balance of supply and demand."
"globalDairyTrade has grown to 280 qualified bidders from 56 countries, an increase from 107 at inception. There are now between 100 and 140 active bidders participating in each event and around 65 percent of bidders joining the event win product. We are very pleased with the success of this innovative sales channel," said Brad Miller, head of CRA's Auctions & Competitive Bidding Practice.
Fonterra also announced that beginning with the Aug. 3, 2010 trading event, it will be adding one new product, Buttermilk Powder, and two new specifications of existing products – High Heat/ Heat Stable Skim Milk Powder and Anhydrous Milk Fat in 1000 kilogram bulk packs - to globalDairyTrade.
"globalDairyTrade continued to grow as an efficient and effective sales channel. To date we have sold 500,000 metric tons worth US$ 1.5 billion on the platform. We now trade four products - Whole Milk Powder, Skim Milk Powder, Anhydrous Milk Fat and Buttermilk Powder. The current forecast is to sell 530,000 metric tons of product over the next 12 months, or approximately 24 percent of Fonterra's New Zealand production. With globalDairyTrade, Fonterra has taken a leading role in developing ways to manage the new price volatility in the markets for dairy products. We are very optimistic about the benefits the entire industry will get from a more open, transparent market," said Mr. Wickham.
Fonterra is a global leader in dairy nutrition – the preferred supplier of dairy ingredients to many of the world's leading food companies. Fonterra is also a market leader with our own consumer dairy brands in Australia/New Zealand, Asia/Africa, Middle East and Latin America. The farmer-owned New Zealand co-operative is the largest processor of milk in the world, producing more than two million tons of dairy ingredients, value added dairy ingredients, specialty ingredients and consumer products every year. Drawing on generations of dairy expertise, Fonterra is one of the largest investors in dairy based research and innovation in the world. Our 16,000 staff work across the dairy spectrum from advising farmers on sustainable farming and milk production, to ensuring we live up to exacting quality standards and delivering every day on our customer promise in more than 100 markets around the world.
About CRA International / Charles River Associates (CRA)
Charles River Associates(R) is a global consulting firm specializing in litigation, regulatory, and financial consulting, and management consulting. CRA advises clients on economic and financial matters pertaining to litigation and regulatory proceedings, and guides corporations through critical business strategy and performance-related issues. Since 1965, clients have engaged CRA for its unique combination of functional expertise and industry knowledge, and for its objective solutions to complex problems. Headquartered in Boston, CRA has offices throughout North America, Europe, the Middle East, and Asia. Detailed information about Charles River Associates, a registered trade name of CRA International, Inc., is available at http://www.crai.com.
For further information contact:
Zeno Group for Fonterra North America