This week, European dairy customers got another step closer to having access to enhanced price discovery for dairy products, as GDT announced it is moving forward with work on a joint initiative with the European Energy Exchange (EEX).
Over the last year, buyers and sellers have been consulted about their interest in having greater price discovery for dairy products through an auction mechanism specifically designed for Europe. The response was positive from more than 50 participants in the dairy value chain from across France, Germany, Ireland, the Netherlands, Scandinavia, Switzerland, the United Kingdom and Asia.
Recognising GDT’s role in providing additional purchasing options for buyers and enhancing the global dairy industry, a joint venture with the EEX is a logical next step. Our expertise in hosting transparent and reliable auctions for generic, large-volume products coupled with EEX’s reputation as a highly regarded European market operator, is the ideal recipe for a trusted and local platform to meet the needs of European customers.
Now that the market consultation and initial evaluations with potential IT partners is complete, we will move forward and develop the scope of possible services, obtain commitments from potential customers, validate commercial viability and agree a partnership arrangement.
We plan to make a final decision on the initiative later this year and if all goes well, the first auction would take place in 2020.
For more information please contact:
Eric Hansen / Director, Global Dairy Trade