Prices rise in Globaldairytrade event

The gDT-TWI index was up 16.9 % after the latest globalDairyTrade trading event.

The trading manager, CRA International, advised that average prices across all contracts and contract periods were as follows:

Paul Grave, globalDairyTrade Manager, said the result appeared to indicate a firmer tone has returned to the market over the last month.

The next globalDairyTrade trading event will be held in two weeks’ time on 15 September 2010.

“Having two events a month will provide a lot more visibility when it comes to assessing the market direction,” Mr Grave said.

For full results see www.globalDairyTrade.info.

NZX has announced its Whole Milk Powder futures contract will commence trading on 8 October. The contract will use globalDairyTrade Whole Milk Powder Contract Period 1 as the reference price for cash settlement.

Fonterra continues to work with a number of leading dairy companies to explore the opportunity for them to participate on the globalDairyTrade platform.  Adding new sellers will require all companies involved to comply with applicable regulatory regimes. We remain hopeful that new sellers will be added to the platform sometime in 2011.

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For further information contact:

Fonterra Communications

Phone: +64 21 507 072

About the gDT-TWI (globalDairyTrade Trade Weighted Index)

The gDT-TWI is an index that shows the percentage change in the average price of a basket of products currently traded on globalDairyTrade – Whole Milk Powder, Skim Milk Powder, and Anhydrous Milk Fat.

The gDT-TWI takes the percentage changes in prices discovered in a globalDairyTrade event and weights them based on total international dairy product trade flows. The calculation for the index can be found in the historic data file that may be downloaded fromhttp://www.globaldairytrade.info under the latest results tab.

About Fonterra

Fonterra is a global leader in dairy nutrition – the preferred supplier of dairy ingredients to many of the world’s leading food companies. Fonterra is also a market leader with our own consumer dairy brands in Australia/New Zealand, Asia/Africa, Middle East and Latin America.

The farmer-owned New Zealand co-operative is the largest processor of milk in the world, producing more than two million tonnes of dairy ingredients, value added dairy ingredients, specialty ingredients and consumer products every year. Drawing on generations of dairy expertise, Fonterra is one of the largest investors in dairy based research and innovation in the world. Our 16,000 staff work across the dairy spectrum from advising farmers on sustainable farming and milk production, to ensuring we live up to exacting quality standards and delivering every day on our customer promise in more than 100 markets around the world.