$2.7 billion (€2.5 billion) worth of dairy produce was traded during Global Dairy Trade (GDT) events in 2022.
The GDT annual report shows that almost 650,000MT of produce was traded on the organisation’s platforms last year.
In 2022, there was an average of 159 participating bidders per trading event, with an average clearance rate of 95%. Overall, 370 bidders took part in the auctions from 66 countries in 2022.
Similar to previous years, 60% of bidders were located in north Asia, southeast Asia and Oceania. 11% of bidders were from Europe
The organisation marked its 300th trading event on January 18, 2022.
The annual report said that skim milk powder (SMP) is still the most active product group for bidders, followed by whole milk powder (WMP) and anhydrous milk fat (AMF).
The participation of bidders in butter milk powder (BMP), cheddar and lactose was down on 2021 levels.
SMP and WMP accounted for 78% of the total quantity of products traded.
GDT
The report stated that the 12-month average prices for all dairy ingredients increased during 2022.
SMP increased by 11% and WMP was up by 1%. Both products reached an eight-year high of $4,598/MT and $4,747/MT in April and March 2022 respectively.
The 12-month average prices for AMF and butter gained 4% and 12% respectively.
In March 2022, AMF grew to a four-year high of $7,115/MT, while butter reached an all-time high of $7,112/MT.
According to the report, BMP rose by 15% and cheddar was up by 19%. Cheddar reached a record high of $6,590/MT in March 2022.
The 12-month average price of lactose was 20% higher than 2021, reaching an all-time high of $1,634/MT in March.
The average GDT Price Index increased by 4% in 2022, building on significant growth in 2021, reaching a recording high of 1,593 in March.
However, since March the index has been on an overall downwards trajectory.
Since June, Fonterra, the European Energy Exchange (EEX) and New Zealand’s Exchange (NZX) each hold equal one-third shareholdings in GDT.
Eric Hansen, chief executive of GDT, said the organisation is pursuing a three-year strategic plan focused on liquidity, global supply, and increased efficiency.
In August, an initiative called GDT Pulse was launched which involves shorter auctions focused on a single product.
These events, being run on a pilot basis, provide additional price discovery between the twice monthly GDT trading events.
In November, the organisation established a subsidiary company and office in Europe “to better serve the needs of European customers and introduce GDT to new customers”.