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Dairy prices rise at Fonterra's auction

Staff Writer | September 12, 2016
International milk prices rose while volumes dropped in this month's first auction held by New Zealand's Fonterra Co-operative Group.
Dairy   Fonterra is owned by about 10,500 farmers
The New Zealand milk co-operative, which is owned by about 10,500 farmers, controls nearly a third of the world dairy trade.

Fonterra's GDT Price Index climbed 7.7 percent, with an average selling price of $2,920 per ton, in the auction held on Tuesday.

The index rose 12.7 percent at the previous sale, said Fonterra, which is known for brands such as Anchor, Anlene and Fresh n'Fruity.

A total of 36,748 tonnes was sold at the latest auction, falling 2.7 percent from the previous one, the cooperative said on its website.

The auctions are held twice a month, with the next one scheduled for September 20.

The auction results can affect the New Zealand dollar as the dairy sector generates more than 7 percent of the nation's gross domestic product.