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Arla Foods Joins Global Dairy Trade Auction

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Arla Foods Joins Global Dairy Trade Auction

Arla Foods Joins Global Dairy Trade Auction
December 14
17:06 2011

Arla Foods, the Danish, Swedish and German dairy co-operative, will begin offering dairy products on GlobalDairyTrade from April 3rd 2012. With Arla Foods’ participation as a seller on GlobalDairyTrade, access to bidders around the world has been expanded, and a tool to improve the challenges of price risk management in a volatile dairy sector becomes available for more market participants.

 

Acting in a global market, and recognising the need to achieve prices that will ensure that Arla Foods pays a competitive milk price to its co-operative owners, joining an online dairy commodity trading platform like GlobalDairyTrade marks the opening up to a so far unused source of potential export growth.

 

Peder Tuborgh, chief executive of Arla Foods.

“We believe that the growth potential on the European markets will continue to be under pressure in the years to come, and we are therefore increasing our focus on the growing markets in the Middle East, Africa and Asia. A part of our strategy is to conduct an efficient trading business on those markets,” explains Peder Tuborgh, chief executive of Arla Foods. “The GlobalDairyTrade auction platform is one of the tools we intend to use to reach and service new and present customers in a cost effective way. We believe that customers will appreciate the opportunity to source Arla Foods products on the GDT auction platform.”

 

GlobalDairyTrade was established as a single-seller auction in July 2008, and sold whole milk powder once a month. In October 2011, DairyAmerica, representing four major US producer-owned dairy co-operatives, joined GlobalDairyTrade.

 

As of October 2011, GlobalDairyTrade has become a multi-seller, multi-product trading platform with two auctions per month, and the online auction is trusted by buyers as well as sellers to transparently and efficiently discover a fair and market-clearing price for a total of seven different categories of dairy food ingredients traded globally.

 

GlobalDairyTrade has sold more than $5 billion until now. Some 700,000 metric tonnes of products are traded annually, and there are approx. 500 bidders registered from 80 countries around the world.

 

Arla Foods will start offering Skim Milk Powder (SMP) Medium and Low Heat products and then, over time, other products will be evaluated and added.

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