Fonterra auction defies pessimistic pundits on milk prices

THE result of last week’s monthly dairy commodity auction by Fonterra of New Zealand defied the predictions of pessimistic pundits.

Dairy prices did not drop as much as expected. On the contrary, whole milk powder prices fell by only 1.6%, remaining 76% higher than the February 2009 average.

The Fonterra auction is seen as a reliable reflection of the global market.