Dairy prices rise, volumes skid at auction - NZ's Fonterra

Tue Aug 20, 2013 9:00pm IST

Stocks

   

Aug 20 (Reuters) - International milk prices rose in the second auction in August held by New Zealand's Fonterra Co-operative Group, but volumes fell, the world's biggest dairy exporter said.

Fonterra's GDT Price Index, formerly the Global Dairy Trade-Trade Weighted Index, rose 2.3 percent, with an average selling price of $4,941 per tonne, in the auction held on Tuesday.

The jump followed a 2.4 percent drop in the previous sale, said Fonterra, which is known for brands such as Anchor, Anlene and Fresh n' Fruity.

A total of 56,173 tonnes was sold, falling 7.3 percent on the previous auction, the cooperative said on its website (www.globaldairytrade.info).

The auctions are held twice a month, with the next due on Sept. 3.

The auction results can affect the New Zealand dollar as the dairy sector is a major export earner for the country and generates more than 7 percent of gross domestic product.

The New Zealand milk cooperative, owned by around 10,500 farmers, controls nearly a third of the world dairy trade.

This week's auction is the second since the company revamped its index. It has restated previous auction results based on the new index calculations. (Reporting by Ratul Ray Chaudhuri in Bangalore; Editing by Dale Hudson)

  • Most Popular
  • Most Shared