A “hint of conservativeness” can be detected in Fonterra’s updated forecast on the farmgate milk price last week, says ASB’s senior rural economist Nathan Penny.
Eric Hansen, director of Global Dairy Trade (GDT), says the 24/7 dairy Marketplace trading platform has proven to be an attractive conduit for buyers and sellers seeking to trade in smaller volumes than the larger generic trades executed on the price discovery platform known as GDT Events.
“GDT Marketplace provides immediacy and flexibility for businesses wanting to buy or sell a wide range of products in any quantity at any time on a reliable, safe and secure digital platform.”
GDT Marketplace now has 165 registered buyers, transacting with five major sellers. At least 1500 listings have been completed in a broad product range, e.g. generic ingredients like whole milk powders and cheese, and more specialist offerings such as flavoured milk powders and calcium caseinates used in sports nutritional products.
“GDT Marketplace is attracting strong interest from dairy companies, and we expect to see further expansion of sellers and products from different regions available through the platform,” says Hansen.
A GDT Marketplace buyer says participating on the platform had been good for business: “It is a convenient sales platform that provides me with visibility of ingredient prices any time, and a simple purchasing process to secure volumes.”
“These positive responses from both sides of the market demonstrate that this innovative service – which acts like a global shop front connecting buyers and sellers – is effectively complementing our primary GDT Events platform. In its first year of operation, GDT Marketplace has established its ability to discover new demand.”