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Global Dairy Trade is converting significantly more dairy
More volume was converted on the Global Dairy Trade last year than a year earlier. Due to the decreased dairy prices, monetary turnover fell. This is evident from the annual report of the global dairy auction platform.
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A total of 2023 tons of dairy products were traded in 744.930, an increase of 15% compared to a year earlier. Just over half of this is whole milk powder. Skimmed milk powder represents more than a quarter of the trade volume. The rest is AMF (9%), butter (7%), cheddar (2%) and other (2%). The underlying value of traded manufactured goods fell from $2,7 billion in 2022 to $2,4 billion. This is a result of the heavily depreciated dairy prices last year.
CEO Eric Hansen speaks of a special year, given that the platform existed for 2023 years in 15. In the past year, several new providers were welcomed to have a better global spread. The Belgian dairy producer Solarec, among others, has been affiliated with the GDT since September. Initially with skimmed milk powder and recently also with butter, mozzarella and whole milk powder. According to Hansen, the goal is to further expand trading volume in the coming years.
Pulse Auctions
Since August 2022, the GDT has also facilitated the so-called Pulse auctions. This takes place in the weeks when there are no auctions. These are short-term auctions that last only 18 minutes on average. Hansen finds the results encouraging. Since its introduction, just under 50.000 tonnes of dairy with a value of $144,7 million have been traded through the Pulse auctions.
Ownership of the Global Dairy Trade is held by European Energy Exchange (EEX), Fonterra and New Zealand's Exchange (NZX). Fonterra started the initiative in 2008 and is still by far the largest provider. The other suppliers are Arla, DairyAmerica Darigold, Valley Milk and Solarec.