Global Dairy Trade (GDT)
Global Dairy Trade’s lead auction platform for dairy products is GDT Events, where commodities (bulk products rather than branded products), including whole milk powder, butter and lactose are traded internationally.
How does GDT Events work?
The platform works as an ‘ascending price clock auction’, which means that a set quantity is on offer for sale and prices increase each round until demand matches supply. Bidders know the starting price of the first round before the auction begins, and at each round they say how much they want to buy, knowing that prices will increase. Generally, as prices increase, demand for the products decreases, so a market price for the products is discovered.
The auctions, known as ‘trading events’, take about two hours and are conducted online.
Auctions take place fortnightly and are run by GDT’s trading manager, CRA International, an international economics consulting firm based in Boston in the US.
For more information on GDT Events, go to www.globaldairytrade.info
Find out more about CRA International
Who is GDT
GDT Ltd was established in 2008 by Fonterra as a special purpose subsidiary. Since then it has become one of the leading ways for dairy companies and analysts to discover credible market prices for dairy commodities.
Although GDT is owned by Fonterra, it operates completely independently. GDT is subject to an independent advisory board that represents buyers and sellers trading on the platform and advises on GDT’s operations. Fonterra’s NZMP division is subject to the same rules as other sellers, and CRA International makes sure each auction is run completely independently from all participants.
Fonterra’s is the largest seller on the GDT Events platform with NZMP branded dairy commodity product and there are eight other sellers across nine product groups.
GDT has more than 600 qualified bidders from over 90 countries across Europe, the US, India, Australia and New Zealand.