The Global Dairy Trade, an auction platform that facilitates the trading of dairy derivatives, has been acquired through an equal partnership between New Zealand-based dairy co-op Fonterra, New Zealand’s Exchange (NZX) and the European Energy Exchange (EEX).
Each party will take equal ownership of the platform and the partnership is expected to be completed by the middle of the year should it clear the relevant boards and regulatory agencies.
The Global Dairy Trade is a dairy trading platform that lets interested parties participate in auctions of dairy products and ingredients. It also offers a data tracking service to keep track of the ongoing price fluctuations of dairy derivatives.
“This is good news for our farmer owners, unit holders and all dairy industry participants, and is expected to lead to greater volumes being traded on GDT,” said Fonterra Chief Executive Miles Hurrell. “Our focus has been about securing the best partners, and NZX and EEX share our vision for a stronger, more liquid auction platform that benefits all involved.”
“We see the expansion of the physical trading environment as both further strengthening existing financial contracts and enabling the creation of new tools and opportunities for dairy processors and end users to manage price volatility. These offer clear benefits for New Zealand dairy farmers and customers around the world,” said NZX Chief Executive Mark Peterson.
“Becoming a shareholder of Global Dairy Trade is perfectly in line with the EEX strategy of taking asset classes, which we already successfully serve to a global dimension,” said EEX Chief Strategy Officer Dr Tobias Paulun.
Source : Food Processing Australia 23rd Feb 2022