Fonterra cuts GDT milk offerings

Around 1.3 billion litres less milk will be offered on Fonterra’s Global Dairy Auction (Global Dairy Trade) over the next 12 months, the New Zealand dairy giant has reported. The volume for the auction was lowered following calls by some New Zealand farmer leaders to completely suspend the auctions. Standard & Poor’s has also put the co-operative on a credit watch, citing poor market conditions and the firm’s high debt. Fonterra has been investing in China operations, including 20% of Chinese infant milk producer Beingmate.