With Arla Foods’ participation as a seller on GlobalDairyTrade, access to bidders around the world has been expanded, and a tool to improve the challenges of price risk management in a volatile dairy sector becomes available for more market participants.
Acting in a global market, and recognising the need to achieve prices that will ensure that Arla Foods pays a competitive milk price to its cooperative owners, joining an online dairy commodity trading platform like GlobalDairyTrade marks the opening up to a so far unused source of potential export growth, the company said.
CEO in Arla Foods, Peder Tuborgh, said: “We believe that the growth potential on the European markets will continue to be under pressure in the years to come, and we are therefore increasing our focus on the growing markets in the Middle East, Africa and Asia. A part of our strategy is to conduct an efficient trading business on those markets.
“The GlobalDairyTrade auction platform is one of the tools we intend to use to reach and service new and present customers in a cost effective way. We believe that customers will appreciate the opportunity to source Arla Foods products on the GDT auction platform.”
GlobalDairyTrade was established as a single-seller auction in July 2008, and sold whole milk powder once a month. In October 2011, DairyAmerica, representing four major US producer-owned dairy co-operatives, joined GlobalDairyTrade.
Source: Arla Foods
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