Arla Joins GDT as a Seller of Lactose

22 Jan 2015 --- Arla Foods Ingredients is to sell lactose ingredients through the Global Dairy Trade online auction platform for the first time.

On April 15th 2015, Arla has said it will make its lactose more widely accessible in international markets by introducing one of its lactose qualities to the Global Dairy Trade (GDT) online auction platform: its food-grade lactose. Three mesh sizes will be available: unmilled, mesh 100, and mesh 200. All lactose is vegetarian, kosher/halal.

There are a number of benefits in doing this, it said. These include:
• Transparent price setting at the market’s best price. The market sets the price rather than the supplier
• Development of a reliable benchmark for lactose. Ensure reliable high product quality from approved facilities
• Consistent sales outlet that matches demand with supply. The platform helps manage potential volume volatility

Luis Cubel, Sales Director for Arla Foods Ingredients’ Permeate & Lactose Business, said: “GDT attracts more than 650 qualified buyers from more than 90 countries, and yet at present they have very little access to lactose through the platform. We can fill this gap in the market by offering our high quality lactose through GDT, which will boost our efforts to become market leader in the global lactose ingredients sector.”

He continued: “Arla Foods, our parent company, already trades skimmed milk powder on GDT so we know how effective it can be in terms of reaching existing and new customers. Our move into lactose will enhance our position in the market.”

GDT is open for bidders twice a month via an online auction. Sellers announce the volume of product available and the starting price, and bidders submit bids on the volume they would like to buy at that price. If demand exceeds supply, the Trading Manager then increases the price for the next round. This continues round by round in an ascending price clock auction until all bidding has ceased.

Arla Foods Ingredients’ decision to offer lactose through GDT comes at a time when the company is in the process of significantly increasing its lactose volumes. The official opening of Arla Foods Ingredients’ new lactose factory in Jutland, Denmark, took place in November 2014. When fully operational it will take Arla Foods Ingredients’ total lactose output – including that produced through joint-ventures – to 115,000 tonnes during 2015.