EEX and GDT initiators
Possible European internet auction for dairy
There may be a European variant of the Global Dairy Trade (GDT). The European Energy Exchange (EEX) and the GDT have signed a letter of intent and will investigate the possibilities for a European internet auction.
In the coming months, the two parties will enter into discussions with buyers and sellers of dairy products to explore the options for an auction of European dairy products.
According to Sascha Siegel, director of agricultural commodities at EEX, the dairy chain can benefit from a new sales channel for exports. Should it come to that, new tools for price risk will emerge. GDT director Eric Hansen is also enthusiastic about the possibilities.
Who are the initiators?
Since May 2015, forward contracts for skimmed milk powder, whey powder and butter have been traded via the EEX in Leipzig (Germany). Traded volumes have since set multiple records and show steady growth rates.
The GDT is part of New Zealand dairy Fonterra. The GDT is a biweekly internet auction of products offered by Fonterra. In 2011, Dairy America, a major powder producer, gained access to the platform as a second party. Several large dairy processors are now providers of the internet auction. The platform has 520 registered buyers from more than 80 countries.
Wouter Job
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