DairyAmerica to sell milk products on Fonterra’s GlobalDairyTrade platform
July 21 (BusinessDesk) – DairyAmerica, a marketing company for four U.S. dairy cooperatives, will begin selling milk
products through Fonterra Cooperative Group’s GlobalDairyTrade platform in October, as the auction site opens to outside
participants.
Starting on Oct. 4, DairyAmerica will offer skim milk powder through the platform with the intention of adding more
products over time, GDT said in a statement.
More outside suppliers may follow, as Fonterra has held talks with Europe’s Arla Foods and FrieslandCampina, and
Australia’s Murray Goulburn. GDT, which began in 2008, published market rules last week.
DairyAmerica’s producers account for about 45% of the non-fat and skim milk powder produced in the U.S. The marketing
company exports about 176,000 metric tonnes of products a year. Some 650,000 tonnes of Fonterra dairy products trade on
the GDT site each year.
“Looking forward, the company would be managing a significant proportion of its export business through
GlobalDairyTrade, rather than through distributor and reseller arrangements,” DairyAmerica chief executive Rich Lewis
said.
Fonterra expanded its own range of products sold via GDT this year to include milk protein concentrate (MPC), rennet
casein and cheese from July 19. It also sells anhydrous milk fat, butter milk powder, skim and whole milk powder.
Adding more sellers would lift volume and result in “more reliable price discovery,” Gary Romano, managing director of
Fonterra Trade & Operations, said earlier this year.
(BusinessDesk)