Sale of GDT yields Fonterra 35 million

Fonterra has sold two thirds of the shares of dairy trading platform Global Dairy Trade (GDT). European Energy Exanche (EEX) and New Zealand's Exchange (NZX) have both taken a third stake. Fonterra also holds 33,3% of the shares. The sale will bring in $35 million for the New Zealand dairy cooperative.

The intention is to further develop the platform with the new partners on board and to trade larger dairy volumes. EEX and NZX are excellent partners for this, Fonterra thinks. The dairy trade is not new to both the EEX and NZX. The EEX facilitates the European futures markets for butter and skimmed milk powder. Dairy futures trading in New Zealand goes through the NZX platform. 

At the GDT, dairy products (such as butter, AMF, cheddar and milk powder) are auctioned twice a month from various dairy companies in the world. Due to its transparent pricing, the GDT is an important indicator of sentiment on the global dairy markets.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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