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SETTING THE BENCHMARK FOR DAIRY COMMODITY TRADING www.globaldairytrade.info April 2015
S E T T I N G T H E B E N C H M A R K F O R D A I R Y C O M M O D I T Y T R A D I N G
www.globaldairytrade.info
April 2015
Introducing GlobalDairyTrade
Since its formation in 2008, GlobalDairyTrade has developed into a truly global, multi-seller auction platform with annual sales of over 1 million metric tonnes of dairy products across a wide range of product groups.
Today, GlobalDairyTrade brings together over 650 approved buyers from more than 90 countries, with a range of sellers spanning Europe, USA, India, Australia and New Zealand.
Discover more within these pages about GDT’s sellers, their products, and how it has developed into the reliable international market reference price for dairy products.
“GDT has continued to attract new sellers and buyers through the last year—a period of continuing price volatility. We are very thankful to
the many sellers and buyers who support GDT, and we look forward to a range of exciting new developments over the next year.”
ERIC HANSEN - ACTING DIRECTOR, GLOBALDAIRYTRADE
GlobalDairyTrade at a glance
Twice each month, GlobalDairyTrade balances supply and demand to determine a market-based reference price for the products traded.
Sellers offer fixed quantities of dairy product and participants bid for that product. When demand exceeds supply, the price increases over a series of bidding rounds until demand matches supply, at which point the final price is set.
GDT’s business vision has guided its development over the last five years.
TOTA
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DEMAND DECREASES
PRICE ANNOUNCED EACH BIDDING ROUND
QUANTITYON OFFER
$2000ROUND 1
$2300ROUND 2 ROUND 3 ROUND 4 ROUND 5 ROUND 6 ROUND 7
$2500 $2600 $2675 $2725 $2750
THIS IS THE PRICE THAT ALL WINNING BIDDERS PAY
The price is increased until the amount bidders are willing to purchase equals the amount sellers have offered to sell
PRICE INCREASES
TRUSTED REFERENCE PRICE TRANSFORMATIONALUNQUESTIONED INTEGRITY
OUR VISION
A track record of growth
What started out as an innovation involving a single seller and a limited pool of buyers, has now grown to include over 650 registered buyers seeking a wide range of products. This growth has attracted additional sellers, each one increasing the depth of the marketplace and adding to its credibility.
Growth trends This chart details GlobalDairyTrade’s growth in number of bidders and annual quantity of product sold.
Refer to page 23 for data
12 month sold quantity (LHS)
Approved bidders* (RHS)
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800
900
1,000
0
100,000
200,000
300,000
400,000
500,000
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700,000
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900,000
1,000,000
1,100,000
Approved Bidders Sold Quantity (MT)
* Bidder numbers will vary as new bidders register and inactive bidders are terminated (after 18 months of non-participation).
“GDT provides a reliable platform for price discovery, setting a baseline for globally traded dairy commodities that enables us to focus our efforts on value added activities. In my 26 years in
dairy I have not seen a bigger innovation”.
THEO SPIERINGS - CEO, FONTERRA CO-OPERATIVE GROUP
Fonterra WMP GDT Starts
Fonterra AMF
Fonterra SMP
Fonterra BMP
Fonterra MPC70 & RenCas
Fonterra Cheddar
DairyAmerica SMP
Arla Foods SMP
Murray Goulburn Lactose
Fonterra Butter
Amul SMP and WMP
DairyAmerica Butter
Euroserum SMP
Arla Foods SMP
Land O’Lakes SMP
DairyAmerica Lactic Butter
Molkerei Ammerland SWP
Fonterra Australia SMP
Arla Foods Ingredients Lactose
Twice monthly events
Market Rules established
Multi-Seller Platform
Monthly Shipment Periods
Advisory Board Established
Chart Focus Launched
GDT’s 100th Trading Event
Trading Event Duration Reduced
New GDT Website Launched
Trading Event Duration Reduced
2015
2008
2009
2010
2011
2012
2013
2014
Sellers and Products* GDT Platform Developments
TWICE-MONTHLY ACCESS TO A GLOBAL CUSTOMER BASE
Accessing buyers from 90 markets creates a globally competitive market place
A global pool of buyers
Buyers are strongly represented across the globe.
PARTICIPATING BIDDERS IN 2014
28%
21%
12%
12%
11%
8%
8% North Asia
South East Asia & Oceania
Europe
Africa
Middle East
South & Central America
North America
Sourcing from GDT provides buyers with many benefits
• Access to a large and increasing range of dairy ingredients
• Buyers can be sure they have paid a competitive, market-determined price
• Buyers decide when and how much they buy
• Buyers decide how far forward they wish to secure product and fix their price
• Buyers have flexibility during the auction to switch their bids between products, contract periods and sellers (subject to eligibility)
• GDT ensures a level playing field where all bidders are treated equally, irrespective of size, region or purchase history
• All winning bidders pay the same price for the same product.
If you wish to buy product via GDT register online at www.globaldairytrade.info
“GDT is a great way to purchase dairy products. It is easy and I know I am buying at the same price
as the others on the platform.”
MR MAHDI HASSANI - OWNER, HASSANI GROUP
Unquestioned integrity
INDEPENDENCE
• An independent auction manager (CRA International, Inc.) conducts each trading event, following the GDT rules
• Annual audits monitor GDT’s independence
NEUTRALITY
• All buyers and sellers participate on the same terms
• All bidding is anonymous
• All sellers are subject to the same rules
TRANSPARENCY
• An independent Advisory Board reviews any proposed changes to the market rules and operation of the trading platform
• No direct contact between bidders, sellers and CRA during trading events
• More information published than any other auction
Advisory Board guides GDT
Established in 2012, the GDT Advisory Board comprises five buyers and five sellers. Members are selected based on published criteria to ensure a broad range of representation. Advisory Board members ensure the voice of buyers and sellers is heard on possible changes to GDT’s operation. They bring an important user perspective as GDT continues to evolve and meet ever changing market needs.
SELLERS
AMUL ARLA FOODS FONTERRACO-OPERATIVE GROUP
DAIRY AMERICA EUROSÉRUM
BUYERS
FROMAGERIES BEL S.A. INNER MONGOLIAKINDAIRY TRADE CO.
Inner MongoliaKindairy Trade Co.
Kuwait Danish Dairies
KUWAIT DANISH DAIRIES
G L O B A L D A I R Y T R A D E
An update on GDT key indicators
C H A R T F O C U S March 2015
GLOBALDAIRYTRADE CHART FOCUS 2015 © GlobalDairyTradewww.globaldairytrade.info
GDT Chart Focus
GDT helps to keep interested parties informed by releasing a six-monthly publication providing an overview of buyers, offer quantities, bidding demand, shipment profiles, average prices and much more. You can download this from: www.globaldairytrade.info/en/resources/
GLORIA S.A. OLAMINTERNATIONAL LTD
A growing number of sellers
If you wish to explore opportunities to sell product on GDT contact us at [email protected]
ACCESS GLOBAL MARKET Access to global pool of active buyers
Additional global reach every fortnight
Sell large volumes efficiently
Sellers control their own sales and customer strategies
Strengthen relationships
All sellers have full access to all qualified buyers. Each seller determines which buyers they are willing to trade with and are encouraged to market and promote their products to maximise buyer interest.
Access to a global market
GDT brings buyers and sellers together and provides a process for setting a fair price. Joining GDT as a seller does not interfere with customer relations. In fact, it strengthens them through more regular contact without bargaining tension. Sellers retain the key relationship, including continuing to manage all aspects of contract execution.
Growing Value
GDT’s closing prices provide a foundation for each seller to measure their value added activities. Sellers can be confident that their product will be sold to those willing to pay the most, enabling them to focus more of their effort on creating additional value for their businesses.
STRENGTHEN RELATIONSHIPS Retain and enhance existing customers
Access to new customers in new markets
Reference price for long term sales contracts
GROW VALUE Foundation for value add strategy Identifies value of non-commodity services
Remove distractions, focus on value
“Joining GDT has enabled us to market our products globally to hundreds of buyers all around the world, in an efficient and transparent way.
We can see Amul‘s credibility has already improved in the global market through our association with GDT.”
R.S.SODHI - MANAGING DIRECTOR, AMUL
600
800
1,000
1,200
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1,600
1,800
Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14
GD
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Inde
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GDT Price Index
Japanese tsunami
US drought
NZ extremely favourable climate
NZ & AU drought
Oil Prices start falling
Russian embargo
Delivering price transparency
For many years, the dairy industry suffered from the traditional confrontational approach to negotiating contracts and agreeing prices. Sellers and buyers could not be sure whether they were paying or receiving a fair market price, often resulting in an unproductive negotiation process.
The introduction of a transparent price-setting channel has removed much of this non-productive effort and allows the dairy industry to focus on adding value.
GDT enables much clearer visibility of how supply and demand factors influence the price of dairy commodities, and provides immediate transparency.
GDT Price Index
* NZX is a regulated exchange operating equity, debt, electricity and derivatives markets in New Zealand. NZX also distributes agricultural data and commentary from a global perspective.
Supporting other markets
In 2010 NZX* launched the first of its four dairy futures contracts, WMP Futures. This was followed by the launch of SMP and AMF Futures and then WMP Options. Butter futures were introduced in December 2014. NZX Dairy Futures have since traded more than 140,000 lots with all futures contracts cash settled to prices derived from GDT. The extension of NZX trading hours in Q3 2013 has provided greater accessibility for those trading from Europe and the US. Continued volume growth in NZX Dairy Derivatives supports risk mitigation in the global dairy industry into the future.
“When NZX was looking for a trusted and transparent price to settle its dairy futures products, GDT was the obvious choice. Traders in the financial markets rely on GDT to set prices. GDT immediately reflects changes in the
global supply and demand picture.”TIM BENNETT - CEO, NZX
NZX Dairy Derivatives QuantityNZX Dairy Derivatives Quantity
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Increasing range of products
GlobalDairyTrade’s range of products continues to increase as additional sellers join, with each one adding their own product lines and further expanding the depth of the marketplace.
Despite some seasonal variations, GDT see continued strong growth against product groups.
PRODUCT
SMP
WMP 570,912
228,465
Butter 60,759
BMP 7,992
AMF 85,457
Cheese 35,192
Rennet Casein 8,929
SWP 1,511
Lactose 367
NUMBER OF SELLERS QUANTITY SOLD MT(2014)(2014)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Quantity (MT)
2011 2012 2013 2014
Quantity sold per month for all products
Our future
Continued growth is forecast for the global dairy markets, and this will underpin further expansion in the trade of dairy ingredients. GDT will continue to grow its current auction platform by adding more sellers, a wider range of products and more buyers from around the world.
GDT will explore the use of additional, complementary trading platforms to promote further e-commerce in the dairy industry. We will seek ways to improve transparency by providing additional information to support the physical and derivatives markets, and further strengthen governance by enhancing the authority of the Advisory Board.
Our team
Eric Hansen - Acting Director, GlobalDairyTrade
Shaun McCauley - Chief Technology Officer
Michael Nolan - GM Operations
Jen O’Hara - GM Marketing and Sales
David - Business Operations Manager
Karen - Business Operations Manager
Vicki - Business Operations Manager
Yasmine - Technology Operations Manager
Contact us
Email us at: [email protected]
Or visit our website: www.globaldairytrade.info
“We see huge potential to grow the number of sellers, the range of products offered,the number of buyers, and even the type
of online trading methods provided.”ERIC HANSEN - ACTING DIRECTOR, GLOBALDAIRYTRADE
M O R E I N F O R M A T I O N O N O U R S E L L E R S
www.globaldairytrade.info
Amul joined GDT in June 2013, and currently offers Skimmed Milk Powder (Medium Heat and High Heat) and Whole Milk Powder. Detailed product specifications are available at GlobalDairyTrade Resources page.
Overview of Amul
The first Amul co-operative, Kaira District Co-operative Milk Producers' Union Ltd., was formed in 1946. Amul since then has been on the forefront by processing and innovating variety of high-grade dairy products such as Amul Butter, Amul Cheese, Amul Chocolates, Amul Ice-Cream, Amul Milk Powder and Amul Flavoured Milk. Most Amul products are leaders in their market segments in India.
The Amul range of products is marketed by Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF). GCMMF has 3.2 million milk producers affiliated to 50 cooperative dairy plants with a total milk handling capacity of 20 million litres per day. The total milk drying capacity is 600 metric tonnes per day. Sales revenue for the year 2012-13 touched US$2.5 billion, making Amul the largest food brand in India.
Reasons to purchase Amul’s products
The highest quality standards are maintained at our dairy plants. Protein is the main body building component and is used for the growth, maintenance and repair of all cells. Amul Milk Powders has minimum of 35% Protein content. Amul Milk Powders are made from the mix of Cow and Buffalo milk. Due to this, these milk products have a nicer taste and whiter appearance.
Contact Information
Website: www.amul.com Email: [email protected] Phone: +91 2692 258507, 258508
Arla Foods joined GlobalDairyTrade (GDT) as a seller in 2012 and today sells two Skim Milk Powder products and Butter Milk Powder on the auction. A detailed product specification is available at GlobalDairyTrade Resources page. Arla Foods is the world’s sixth largest dairy company, owned by approximately 12,000 Danish, Swedish, German, Belgium, Luxembourg, the Netherlands and UK dairy farmers. We have production facilities in 13 countries and sales offices in further 20, with a total of more than 18,100 employees. Arla Foods handled approximately 10.4 billion kilograms of milk in 2012 and had a turnover of DKK 63 billion in 2012.
Arla Foods’ products are sold under the well-known brands Arla®, Lurpak® and Castello® in more than 100 countries.
Reasons to purchase Arla’s products through GlobalDairyTrade
• Premium and consistent products: Our dairy sites are fulfilling highest quality standards to ensure a consistent premium quality of the products.
• Full traceability: Arla Foods has full traceability of our raw materials, ingredients and end products enabling us to take immediate action.
• Leading farm quality programme: Our programme “Arlagården” is one of the leading farm quality programme in the world, targeting milk composition, animal welfare, food safety and environmental considerations.
Contact information
Email: [email protected] Phone: +45 8938 1000
Arla foods ingredients
Quality starts here: Arla Foods Ingredients is one of the largest whey and lactose suppliers in the world. With double digit annual revenue growth over the past decade, our revenue exceeded EUR 470 million in 2014 (incl. joint ventures). We employ more than 800 people around the world and have ambitious growth plans for the future.
Responding to the growing global demand, we have completed a major expansion of our lactose processing capabilities in Denmark supporting your need for high quality lactose at the best possible price.
To the Global Dairy Trade (GDT) online auction platform we offer our food-grade lactose. Three mesh sizes will be available and is all vegetarian, kosher and halal:
• Unmilled• Mesh 100• Mesh 200
Reasons to purchase Arla Foods Ingredients’ lactose
• Premium quality: All lactose supplied to GDT come from our brand new state of the art production facility in Denmark, which takes the quality of our lactose to the next level
• Supply security: We are consistent in our volumes offered through GDT so you as the customer can rely on GDT as a reliable supply channel of lactose
• Full traceability: We have full traceability and control of our sourcing of raw materials, which adds another level of safety to using our lactose
Arla Foods Ingredients Group P/S is a 100% owned subsidiary of Arla Foods, a global dairy company and cooperative owned by dairy farmers in Denmark, Sweden, the UK, Germany, the Netherlands, Belgium and Luxemburg.
For more information about our full product range please contact:
Website: www.arlafoodsingredients.com Email: [email protected]
DairyAmerica is the world’s leading Nonfat Dry Milk, Skimmed Milk Powder, and Buttermilk Powder supplier. DairyAmerica is owned by four milk processing co-operatives across the United States, which include Agri-Mark, California Dairies, O-AT-KA Milk Products, and United Dairymen of Arizona.
Our products are sourced from the highest quality, 100% bovine milk produced in the U.S.A. Our members have drying locations across the U.S. and only a 15% difference in milk intake from peak to trough months, enabling DairyAmerica to provide high quality, fresh products year round.
Delivering over a hundred different product specifications since 1995, DairyAmerica reached a total sales volume of 450,000 metric tons to more than 60 countries in 2012. Our sales are supported by a world class logistics team, with the ability to deliver product with full export documentation to any port in the world.
“GDT is an integral piece of our global sales strategy. It allows us to manage our sales position, it allows us to tap into global supply and demand networks, and it has enabled us to expand our business by accessing direct customers globally.”
HOYT HUFFMAN, CEO, DAIRYAMERICA, INC.
For more information, please contact
Rid Khan Manager, GlobalDairyTrade Phone: +1 559 251 0992 Email: [email protected]
Euroserum has traded Skim Milk Powder on the GlobalDairyTrade auction platform since November 2013.
Joining GDT is part our international strategy. EUROSERUM already exports more than 75% of its dairy ingredients across the world. By joining GlobalDairyTrade, EUROSERUM is seeking to get closer to the market and to work transparently to ensure that its offering provides the best fit with the expectations of clients in different countries around the world.
The powders marketed by EUROSERUM come from milk collected within the SODIAAL Group, France’s leading cooperative dairy and the 4th biggest in Europe. The undertakings made by the SODIAAL milk producers in their ambitious sustainable development procedure, named the “Route du Lait”, guarantee compliance with best practice on the farms in terms of both milk quality and the environment.
These strict standards among the producers, combined with the EUROSERUM expertise in drying technologies, allow the group to offer a range of very high quality milk powders.
For more details visit
Websites: www.euroserum.com and www.sodiaal.fr Email: [email protected]
Fonterra’s vision is to be the natural source of dairy for everyone, everywhere, everyday. Fonterra is a global, co-operatively-owned company with roots firmly planted in New Zealand’s rich land, working to unlock every drop of goodness from the 22 billion litres of milk we collect each year and sharing it with the world.
Fonterra was a foundation seller on GlobalDairyTrade and today we sell more than anyone else, with products including: Whole Milk Powder (WMP), Skim Milk Powder (SMP), Butter, Anhydrous Milk Fat (AMF), Milk Protein Concentrate 70 (MPC70), Rennet Casein and Cheddar Cheese. Fonterra’s size and our quality products make us the ideal purchasing partner on GDT. Fonterra has transacted over 1.2 million metric tonnes of product and US$9.6 billion on GDT since the 2008 launch.
Why Fonterra?
A leading global dairy ingredients provider with 10,500 farmer shareholders working alongside 16,900 staff throughout New Zealand and in markets across the globe; we supply products to more than 100 markets. The largest processor of milk in the world, we produce over two million tonnes of standard and value added dairy ingredients, specialty ingredients and consumer products annually.
We are the preferred supplier of dairy ingredients to many of the world’s leading food companies; working in partnership to provide solutions from standard dairy ingredients, including milk powders and butter, functional ingredients such as specialised proteins for sports and nutritional beverages, as well as tailored cheese for foodservice applications.
Quality is paramount
We are proud of our standards for safety, quality and integrity. Drawing on over 150 years of dairy expertise, Fonterra is one of the world’s largest investors in dairy based research and innovation. Our products are manufactured through world-leading processes, leveraging New Zealand’s extensive dairy knowledge.
Contact Information
Website: www.fonterra.com Email: [email protected]
Land O'Lakes, Inc., one of America's premier agribusiness and food companies, is a member-owned cooperative with industry-leading operations that span the spectrum from farm production to consumer foods.
With 2012 annual sales of more than $14 billion, Land O'Lakes is one of the nation's largest cooperatives, ranking in size at #194 on the Fortune 500. Building on a legacy of more than 92 years of operation, Land O'Lakes today operates some of the most respected brands in agribusiness and food production including LAND O LAKES® Dairy Foods, Purina Animal Nutrition and WinField.
The company does business in all 50 states and more than 60 countries. Land O'Lakes, Inc. corporation headquarters are located in Arden Hill, MN.
Contact Information:
Website: www.landolakes.com Email: [email protected]
Molkerei Ammerland is one of Europe’s leading dairy cooperatives, owned by more than 2000 dairy farmers located in north west Germany, and processes through its state of the art production facilities more than 1.5 billion kilograms of milk.
Based on our concept of food safety and quality we only process milk from our own farmers and guarantee a self-contained quality chain from the primary production to the finished product.
Drawing on over 125 years of dairy expertise we specialize in Cheeses, Butter, Whey Powders, Milk Powders and Fresh Dairy Products which are sold under the brand Ammerländer—made in Germany —to over 50 countries around the world.
We have sales offices in Singapore, China, Spain, Hungary and the United States, and have an increasing presence abroad.
For further information please visit:
Website: www.molkerei-ammerland.de Email: gdt@ molkerei-ammerland.de
As a seller on GlobalDairyTrade, Murray Goulburn Co-operative Co. Ltd sells Lactose produced from high-quality Australian milk.
Overview of Murray Goulburn
Australia’s largest dairy company, Murray Goulburn (MG) is a co-operative of Australian dairy farmers. The spirit of co-operation has seen MG recognised as a world-class supplier of dairy ingredients and retail products for over 60 years. MG manufactures and markets a full range of dairy ingredients including Skim Milk Powder, Full Cream Milk Powder, Cheese, Milk Fat Products, Whey Powders, Lactose and Milk Proteins. A range of retail products are sold under the Devondale brand. In 2011-12, MG handled 2.94 billion litres of milk intake and had A$2.4 of sales revenue.
Reasons to purchase Murray Goulburn lactose
Made from Australian milk – Australian milk is one of the best quality milk sources in the world. Every bag of our lactose is made from premium milk produced by Australian grass-fed cows.
MG Lactose applications – MG Lactose is suitable for many applications, including confectionary, bakery goods, dairy, snack foods, convenience foods, soups, sauces and savoury mixes, nutritional products, and milk standardisation.
Global Standard – MG adheres to rigorous quality management and safety systems. Our reputation for quality and food safety makes us a preferred supplier of dairy products. Our manufacturers apply the latest technologies and innovations to produce our products and ensure we meet, BRC and HACCP global standards.
Contact details:
Email: [email protected] Tel: +61 3 9040 5000
More product details and information are available at: www.globaldairytrade.info/Resources.aspx
www.globaldairytrade.info
