Fonterra Announces Expansion of GlobalDairyTrade
All parties are keen to be open and transparent so that globalDairyTrade moves to the next phase of its development with continued wide support from the global industry.
3/10/2011 --- Fonterra is expanding globalDairyTrade, the online dairy products trading platform, to allow other dairy companies to sell their products on the platform, and also intends to widen the range of Fonterra products for sale on globalDairyTrade.
“Fonterra has been working with a number of international dairy companies to develop draft market rules that will enable this to happen,” said Gary Romano, Managing Director, Fonterra Trade & Operations.
Major dairy producers Arla Foods and FrieslandCampina from Europe; California Dairies and DairyAmerica from the West Coast of the USA; and Murray Goulburn from Australia have had input into the development of a draft set of market rules that will govern multiple sellers using the platform, although no company has yet committed to offer product on the platform.
Mr Romano said that when globalDairyTrade was launched in July 2008 it was envisaged that other sellers of dairy products would eventually join the platform.
“globalDairyTrade is releasing the draft rules so that industry participants and stakeholders have the opportunity to offer suggestions and feedback. All parties are keen to be open and transparent so that globalDairyTrade moves to the next phase of its development with continued wide support from the global industry.”
Mr Romano said having other sellers on globalDairyTrade will add more volume and will lead to even more reliable price discovery. At the same time, it has the potential to attract more buyers, given the platform will offer products from different geographies, enabling better risk management.
Fonterra will offer Milk Protein Concentrate (MPC) and Rennet Casein from the 17 May Trading Event.
“Adding these products is in line with our plans to provide our customers with a wide range of products on a world class platform,” Mr Romano said.
