Fonterra to boost internet sales

This comment from Fonterra's Kelvin Wickham should be read by some processors/exporters in the Meat industry. "The move towards more open and transparent commodity markets is inescapable." Agridata was set up to get more transparent  meat prices out to farmers, but its been a battle to get some of the industry to come on board. Obviously Fonterra think its important for farmers!! Fonterra plans to double commodity sales on its internet platform, globalDairyTrade, where it has regular independently run auctions reports The NZ Herald. "We plan to increase volumes and introduce new products," said Kelvin Wickham, managing director of the globalDairyTrade operation, which sells about $1 billion of whole milkpowder on the platform annually. At present the company sells only about 10% of its product online - all full cream milkpowder - and Wickham said the expansion of internet sales would deepen the market. It plans to boost this to 20 % of its NZ-sourced product. Wickham said Fonterra was also looking for other international dairy companies to join the auctions. "We'd welcome other sellers who want to join in the march to a more stable, less risky future," he said. "The move towards more open and transparent commodity markets is inescapable." Wickham said commodity markets were facing their most volatile period in 50 years. "Prices have soared and slumped. Demand has waxed and waned," he said. "Farmers have gone from confidence to concern. But Fonterra still had to get the best price available for its farmers' milk in a global industry making the painful transition from protection and subsidy to a free market. "Currently, we're stuck somewhere in the middle," he said. "Subsidies and support systems mean farmers don't get the right signals from the market. "End result, stockpiles which overhang the market, drag prices down and slow any chance of an upturn." Customers and producers required a transparent market where all parties had access to a valid market price.