Fonterra has defended its on-line global trading system, in the face of continued criticism.
It set up an internet-based system for whole-milk powder seven months ago.
Critics claim it's helping to drive down international dairy prices. Federated Farmers is among those calling on Fonterrra to rethink it's monthly on-line trading events.
It's been reported that the European Union has included it as a factor influencing its decision to reintroduce dairy export subsidies.
However, Fonterra's chief executive, Andrew Ferrier describes that as absolute rubbish. He says it's a preposterous thing to say as the system trades in only 1.3% of the total world supply.
Chairman Henry van der Heyden says the payout forecast would have been be significantly higher if prices from the latest on-line trading event had been achieved all year.
Global trading operations managing director Kelvin Wickham says that while competitors claim the internet auction system is pulling prices down, customers are complaining that it's keeping them up.
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He says it's is the first step in what Fonterra would like to see developed as a market for all dairy commodities.
