Successful introduction DCA Foil Cheese quotations©

Situation: The dairy market is a dynamic one. The market is characterized by a large group of suppliers, dairy farmers and a small number of dairy companies. On the down side are international traders and processors.

DCA-Markets has been making weekly quotations for Cream and Milk Concentrate for many years, just like for Spot Milk, which we have been listing since 2007. These quotes have become very important benchmarks in the market. This is also apparent from the fact that the parties mutually agree to settle on the DCA listing. They use this to price products on the independent DCA benchmark. The sector has demanded a quotation for cheese.

Action
DCA-Markets has made an inventory of the cheese market. The structure of the market and trade flows have been mapped out. A large number of the 'key players' have been approached to give their views on a listing. Much attention has been paid to the specifications. In order to make a good quotation, a lot of price information must be available. In other words, a lot of trading in the underlying product has to be done by parties who also want to pass on their price. Based on this, a panel has been formed of predominantly traders who pass their prices on to DCA on a weekly basis.

Result
After a period of several weeks in which DCA-Markets had a trial run, the DCA Foliekaas for Edam and Gouda cheese was launched on 2 May. It concerns high-moisture cheese ex works in the Netherlands or Germany. Destination Europe. The prize is published weekly on Thursday afternoons at 16 pm. The first quotations were Euro 00 for Gouda and Euro 2,73 for Edam Foliekaas.

Are you curious how we have tackled the above? Or would you like to spar with us to solve similar challenges within your company? Then call 06 46 26 58 74 or email R.vantRiet@DCA.nl

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