‘Next steps taken’ towards European dairy auction venture
The initial consultation period regarding the establishment of a joint venture to operate a European-based auction mechanism for European dairy products has been concluded by the European Energy Exchange (EEX) and Global Dairy Trade (GDT).
The initiative between EEX and GDT received a high level of interest in the market during the evaluation process.
To date, EEX and GDT have met with more than 50 key participants of the dairy value chain.
Following the completion of the market consultation and initial evaluations with potential IT partners, EEX and GDT will now enter the next phase of the project to further develop the scope of possible services, obtain commitments from potential customers, validate commercial viability and agree a partnership arrangement between EEX and GDT.
Final decisions by both partners on the initiative are expected by mid-2019.
The European Energy Exchange (EEX) claims to be “the leading energy exchange in Europe which develops, operates and connects secure, liquid and transparent markets for energy and related products”.
As part of EEX Group, a group of companies serving international commodity markets, EEX offers contracts on power and emission allowances as well as freight and agricultural products.
EEX is part of Deutsche Borse Group.
Global Dairy Trade
Global Dairy Trade is a wholly-owned subsidiary of New Zealand based Fonterra Cooperative Group Limited, and is the world’s leader in global dairy trading.
Global Dairy Trade offers a range of complementary services for dairy buyers, manufacturers and the financial dairy trading sector.
GDT Events is a twice-monthly public price discovery auction for generic, large-volume products. It is the leading dairy auction globally with over 520 registered bidders from more than 80 countries.