[13 June/NZ Herald]

Fonterra Chairman, John Wilson, said its dairy ingredients were selling for $100 to $400 per tonne more than the same milk powder products of its competitors which could significantly boost the milk price. He added its Trusted Goodness quality seal marketing initiative was responsible for the price spike which was noticeable on the Global Dairy Trade Auction. Mr Wilson said it was extraordinary however wanted to ensure it was sustainable going forward. He wanted to know whether it was because of the seal or because of things happening in the market. He noted they had to wait until the end of the year to see but it was highly beneficial to farmers if there was a sustainable premium for Fonterra ingredients. The Trusted Goodness programme was launched last year.