21 Aug 2013

Auction volume change to benefit dairy farmers

6:37 am on 21 August 2013

Strong international demand for dairy products and a more limited supply should have dairy farmers reaping the benefits of continued high prices.

NZX AgriFax says Fonterra is planning on reducing the volume of whole milk powder it puts up for sale on the Global Dairy Trade auction during the coming year.

Analyst Emma Bell said that reduction in supply should keep prices high.

"This puts whole milk powder volumes for the October to January period down 28% on the same time last year," she said.

"Fonterra has previously indicated that they would reduce GDT volumes in favour of other sales channels, and the news of the reduced volumes is expected to assist prices in remaining at elevated levels in the coming months."