Fonterra will from September double the frequency of its global DairyTrade internet auction to twice a month while also expanding the range of products offered.
The result will be an expected doubling in the volume of commodities sold on the platform, from 500,000 tonnes, worth an estimated $2.1 billion over the past two years, to an expected 530,000 tonnes in the next 12 months.
This equates to 24% of Fonterra's New Zealand dairy production.
At each auction Fonterra offers between 20,000 and 23,000 tonnes of whole milk powder, 10,000 tonnes of skim milk powder and up to 5000 tonnes of anhydrous milk fat.
Fonterra's managing director of global trade, Kelvin Wickham, said from the August sale, buttermilk powder and two new specifications of skim milk and anhydrous milk fat would be added to the existing auction of whole milk powder, skim milk powder and anhydrous milk fat.
GlobalDairyTrade has been promoted by Fonterra as a transparent way to determine the international market price so it gave its sellers a starting point when negotiating sales.
Mr Wickham said it also allowed Fonterra to manage price volatility.
GlobalDairyTrade has grown from 107 bidders when it started in July 2008 to 280 registered bidders from 56 countries.
Each trading event attracts 100-140 active bidders, with about 65% securing product.
