Arla Foods will start selling British skimmed milk powder on Fonterra's fortnightly Global Dairy Trade this month, the first time that a British dairy product has entered the auction.
The Scandanavian-based co operative, which includes British dairy farmers, said it had taken the step to gain access to more lucrative markets such as China and the Middle East.
Rabobank senior analyst Hayley Moynihan said Arla wanted better prices for its products.
"It is significant from the perspective that Arla is one of the largest diary companies in the world, in the top 10, and that this is product originating from Britain where, historically, there hasn't been a large surplus of commodity manufactured in the UK," Ms Moynihan said.
