Second globalDairyTrade Event Complete

globalDairyTrade, an online trading platform, represents a significant change in the way Fonterra sells some of its commodity products, and is a first in international dairy trade.

06/08/08 The second trading event for Fonterra’s new internet-based sales platform, globalDairyTrade, concluded at 2am this morning (NZT).

The clearing price for regular whole milk powder for shipment in October was US$3,705 MT FAS New Zealand Port.

Managing Director Fonterra Global Trade, Kelvin Wickham, said the Company was pleased with globalDairyTrade’s second trading event. Overall the prices ranged from US$3705 MT FAS to more than US$4000 MT FAS for product to be shipped from October 2008 to April 2009.

“These prices are in line with expectation and reflect the current commodity market environment” said Mr Wickham.

The Independent Trading Manager from CRA International informed Fonterra that trading ran for just under one hour. CRA reported there was again good interest from customers and the trading platform performed well.

The next monthly trading event is on Tuesday 2 September 2008.

GlobalDairyTrade, an online trading platform, represents a significant change in the way Fonterra sells some of its commodity products, and is a first in international dairy trade. Over the next 12 months Fonterra expects to sell around $NZ 1 billion of whole milk powder on the trading platform, with volumes growing over time.