Most of Fonterra's largest commodity whole milk traders have signed up to the dairy giant's new online trading platform.
Fonterra's managing director of global trade, Kelvin Wickham, said more than 80% of the company's largest commodity whole milk powder customers were registered users with six weeks to go before its launch.
The system was being launched in an effort to reduce volatile dairy prices.
Traditionally, Fonterra has locked customers in to long-term supply contracts at fixed prices, but the Otago Daily Times revealed in February that this prevented customers benefiting when the prices eased. Customers also wanted more pricing transparency.
Mr Wickham said in a statement yesterday that online trading would help customers manage price exposure by allowing them to tender for products each month.
"Management of commodity price risk is something customers have been asking Fonterra to provide for them."
Mr Wickham said Fonterra expected about $1 billion worth of whole milk powder to be traded in the first year. Other dairy products would be added later.
