August 4, 2026 • 5 mins
Fonterra’s managing director of co-operative affairs comments on last night’s “steady as she goes” GDT Auction. In light of the dramatically increased volumes being offered, it was pleasing to see prices supported (Index +0.1%). The improved Chinese demand underlined full cream levels especially.
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Speaker 1 (00:00):
Let's have a look at last night's global dairy trade
auction up zero point one percent, whole milk powder up
zero point two percent, skim milk powder up one point
two percent. Tell us more. Matt Bolger, the memd of
co op Affairs for Fonterra. Matt, I reckon farmers who
were up to their elbows and carving at the moment
quite literally would take this, wouldn't they.
Speaker 2 (00:23):
Yeah, I think so good to tell Jamie yea. I
mean he's hugely busy time on farm of course, And
so those that woke up and saw the saw the
results today, I think what we can say is it's
a stable result. Importantly, while the price has held pretty
much flat, this is against the context of around a
fifty percent increase in terms of the volume that was
(00:44):
on the auction versus a fortnight ago. So to have
all that extra supply come onto the platform and hold prices,
I think, yeah, we'll take that one. Yeah.
Speaker 1 (00:52):
And I see numbers out for durn production, albeit it's
a small amount of milk, but up six point five
percent here in New Zealand. And so you know, as
I finally say, if I'm the little bloke sitting in
Beijing steering out another high rise apartment, and my job
is to monitor the New Zealand climate and milk production volumes.
You might think we could be up in volumes this year.
(01:17):
He's probably factoring and he's probably factoring in super al
Nino as well. But just on those volumes alone, it's
a pretty positive start to the season.
Speaker 2 (01:25):
Yeah it is. I mean, obviously it's still early days,
but great have at all the same so volumes are
up there, a lot of people are watching, and of
course we're making some plans in case the Onino does
come with stouts in the second half of the season.
I know you're right. And look, while UIs in Europe
have slowed down a bit, they are still up on
(01:47):
last year, still tracking higher when you compare a month
a year on year with a year ago, and so
you know, let's up off a higher base, of course,
so again to have the prices hold stable in that environment,
I just just talks to underlying strength and the demand
for dairy. You know, it's a great food.
Speaker 1 (02:05):
I would though, I would have thought Europe would start
getting pinched now in terms of dairy production because of
the heat waves. It's got to have effect have an
effect on production.
Speaker 2 (02:15):
Yeah, well, well, and it's starting to. So while they're growing,
the growth has slowed quite a lot. You know, there's
still positive though. The other thing is now carrying these inventories. Hence,
you know, I think that's had a bit of a
suppressing effect on the prices of European butter and so on.
Speaker 1 (02:33):
Now, I was reading commentary from Mike McIntyre out of
Jardin and he said this. He said, a three four
hundred and fifty whole milk prow a whole milk powder price,
and a key we dollar that is hell bent on improvement,
it would seem unlikely to deliver the current milk price midpoint,
which is of course nine twenty five. So and this
(02:53):
is his commentary, not mine or yours, Matt Bolger, So
he said this obviously being some conservatism being built in
for a later season recovery. Is that what you're planning
on as it stacks up at the moment with these numbers,
would we get to nine twenty five?
Speaker 2 (03:10):
I won't go announce a new milk price on the air,
but we've got a pretty good process where we examine
a range of inputs from futures markets, to other market predictions,
what we know about sales and intel direct from customers
and inventories and so on, and we review that every
few weeks. But so no, we've got no plans to
(03:30):
change what we've got now. And of course, like you said,
as right, we're trying to look through a whole season,
and we're very early in that season now. So while
we try to communicate the best information that we can
as soon as we can, we also have to be
factor in that it is a long season and we're
pretty early into it.
Speaker 1 (03:48):
Yeah, and the orange elephant in the room. Of course,
we don't know what mister Trump's going to do in
the Middle East. I mean, that could end up being
a boost for the world economy if for Heaven for Beddy,
you know, breaks out on the Middle East.
Speaker 2 (04:02):
Yeah, it could. I mean, we obviously keep in close
touch with our colleagues up there in the Middle East,
and they're doing a great job. And we're still despite
it's pretty hard to follow what's happening on the peace
process day to day or week to week. You know,
we're still getting products through to customers and supporting our customers.
Viret add some costs, but you know, the team. They
(04:24):
are doing a fantastic job supporting the market.
Speaker 1 (04:27):
Now this question wasn't on the script. Don't duck for
cover you possibly will Darra. I see that Mark Delatore
from Open Country Dairy, the chief executive your biggest competitors,
saying it's not a level playing field. Does Fonterra still
have an unfair advantage?
Speaker 2 (04:42):
Yes, no, I did see those comments on them. Look,
I take them with the grain of salt. But the
will engage very well and have engaged obviously in the
early stages of the DAIA process. So we'll have more
to say on that as it comes out. But we're
very we're very pro COmON petition, keen to make sure
that there is a level playing field for us to
(05:04):
compete on as well, so we're happy to engage in
their process with the government.
Speaker 1 (05:07):
Well, I'm not sure whether that was an answer or not,
But anyhow, you've batted, you've swatted off Mark. I wonder
if he comes back swinging.
Speaker 2 (05:14):
We'll see.
Speaker 1 (05:15):
Matt Bolger, Managing Director co op Affairs for Fonterra, thanks
for your time and as I say, GDT auction up
zero point one percent following a lift A couple of
weeks ago. I think we'll take this because it was
getting a wee bit worryingly low there, so this is
a move or a stabilization in the right direction.
Speaker 2 (05:34):
Yeah, that's the one. Thanks Jamie, so great action.
Let's have a look at last night's global dairy trade
auction up zero point one percent, whole milk powder up
zero point two percent, skim milk powder up one point
two percent. Tell us more. Matt Bolger, the memd of
co op Affairs for Fonterra. Matt, I reckon farmers who
were up to their elbows and carving at the moment
quite literally would take this, wouldn't they.
Speaker 2 (00:23):
Yeah, I think so good to tell Jamie yea. I
mean he's hugely busy time on farm of course, And
so those that woke up and saw the saw the
results today, I think what we can say is it's
a stable result. Importantly, while the price has held pretty
much flat, this is against the context of around a
fifty percent increase in terms of the volume that was
(00:44):
on the auction versus a fortnight ago. So to have
all that extra supply come onto the platform and hold prices,
I think, yeah, we'll take that one. Yeah.
Speaker 1 (00:52):
And I see numbers out for durn production, albeit it's
a small amount of milk, but up six point five
percent here in New Zealand. And so you know, as
I finally say, if I'm the little bloke sitting in
Beijing steering out another high rise apartment, and my job
is to monitor the New Zealand climate and milk production volumes.
You might think we could be up in volumes this year.
(01:17):
He's probably factoring and he's probably factoring in super al
Nino as well. But just on those volumes alone, it's
a pretty positive start to the season.
Speaker 2 (01:25):
Yeah it is. I mean, obviously it's still early days,
but great have at all the same so volumes are
up there, a lot of people are watching, and of
course we're making some plans in case the Onino does
come with stouts in the second half of the season.
I know you're right. And look, while UIs in Europe
have slowed down a bit, they are still up on
(01:47):
last year, still tracking higher when you compare a month
a year on year with a year ago, and so
you know, let's up off a higher base, of course,
so again to have the prices hold stable in that environment,
I just just talks to underlying strength and the demand
for dairy. You know, it's a great food.
Speaker 1 (02:05):
I would though, I would have thought Europe would start
getting pinched now in terms of dairy production because of
the heat waves. It's got to have effect have an
effect on production.
Speaker 2 (02:15):
Yeah, well, well, and it's starting to. So while they're growing,
the growth has slowed quite a lot. You know, there's
still positive though. The other thing is now carrying these inventories. Hence,
you know, I think that's had a bit of a
suppressing effect on the prices of European butter and so on.
Speaker 1 (02:33):
Now, I was reading commentary from Mike McIntyre out of
Jardin and he said this. He said, a three four
hundred and fifty whole milk prow a whole milk powder price,
and a key we dollar that is hell bent on improvement,
it would seem unlikely to deliver the current milk price midpoint,
which is of course nine twenty five. So and this
(02:53):
is his commentary, not mine or yours, Matt Bolger, So
he said this obviously being some conservatism being built in
for a later season recovery. Is that what you're planning
on as it stacks up at the moment with these numbers,
would we get to nine twenty five?
Speaker 2 (03:10):
I won't go announce a new milk price on the air,
but we've got a pretty good process where we examine
a range of inputs from futures markets, to other market predictions,
what we know about sales and intel direct from customers
and inventories and so on, and we review that every
few weeks. But so no, we've got no plans to
(03:30):
change what we've got now. And of course, like you said,
as right, we're trying to look through a whole season,
and we're very early in that season now. So while
we try to communicate the best information that we can
as soon as we can, we also have to be
factor in that it is a long season and we're
pretty early into it.
Speaker 1 (03:48):
Yeah, and the orange elephant in the room. Of course,
we don't know what mister Trump's going to do in
the Middle East. I mean, that could end up being
a boost for the world economy if for Heaven for Beddy,
you know, breaks out on the Middle East.
Speaker 2 (04:02):
Yeah, it could. I mean, we obviously keep in close
touch with our colleagues up there in the Middle East,
and they're doing a great job. And we're still despite
it's pretty hard to follow what's happening on the peace
process day to day or week to week. You know,
we're still getting products through to customers and supporting our customers.
Viret add some costs, but you know, the team. They
(04:24):
are doing a fantastic job supporting the market.
Speaker 1 (04:27):
Now this question wasn't on the script. Don't duck for
cover you possibly will Darra. I see that Mark Delatore
from Open Country Dairy, the chief executive your biggest competitors,
saying it's not a level playing field. Does Fonterra still
have an unfair advantage?
Speaker 2 (04:42):
Yes, no, I did see those comments on them. Look,
I take them with the grain of salt. But the
will engage very well and have engaged obviously in the
early stages of the DAIA process. So we'll have more
to say on that as it comes out. But we're
very we're very pro COmON petition, keen to make sure
that there is a level playing field for us to
(05:04):
compete on as well, so we're happy to engage in
their process with the government.
Speaker 1 (05:07):
Well, I'm not sure whether that was an answer or not,
But anyhow, you've batted, you've swatted off Mark. I wonder
if he comes back swinging.
Speaker 2 (05:14):
We'll see.
Speaker 1 (05:15):
Matt Bolger, Managing Director co op Affairs for Fonterra, thanks
for your time and as I say, GDT auction up
zero point one percent following a lift A couple of
weeks ago. I think we'll take this because it was
getting a wee bit worryingly low there, so this is
a move or a stabilization in the right direction.
Speaker 2 (05:34):
Yeah, that's the one. Thanks Jamie, so great action.
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