Wednesday, 13 July 2022 14:55

Fonterra's $35m windfall

Written by  Staff Reporters
The new ownership structure of Global Dairy Trade (GDT) will bring more participants and transactions. The new ownership structure of Global Dairy Trade (GDT) will bring more participants and transactions.

Fonterra has finalised the sale of majority shares in the Global Dairy Trade (GDT) auction.

The New Zealand's Exchange (NZX) and the European Energy Exchange (EEX) have each taken a 33.3% stake in the platform for $35 million.

Fonterra chief financial officer Marc Rivers says the confirmation of the strategic partnership is an important milestone for Fonterra and global dairy participants.

"The move to a broader ownership structure marks the next step in the evolution of GDT - giving it a presence in prominent international dairy producing regions, with greater participation expected at GDT events.

"It will bring more participants and transactions, stimulating further growth of risk management contracts available on financial trading platforms.

"This creates opportunities for the growth of financial tools to better manage price volatility - which is something many industry participants, from farmers through to customers, are exposed to," says Rivers.

GDT chief executive Eric Hansen says the GDT team is looking forward to working with EEX and NZX as strategic partners with strong interests in dairy and established reputations as regulated exchanges to enhance GDT's role as an "independent, neutral and transparent price discovery platform".

NZX chief executive Mark Peterson says the strategic partnership will strengthen GDT's market reach benefiting New Zealand dairy farmers and customers.

"At a time of geopolitical and macroeconomic instability, GDT's vision to expand its global reach and provide better transparency in dairy commodity prices, is more important than ever for dairy market stakeholders," says Peterson.

"It aligns with NZX's strategy of growing capital markets, connecting with more businesses, and creating greater value for shareholders and investors.

"In GDT, NZX is excited to be working with the best partners to achieve this."

EEX chief strategy officer Dr Tobias Paulun says being a shareholder of GDT fits perfectly with its strategy.

"EEX looks forward to supporting GDT's growth vision with NZX and Fonterra with the aim to create value for the global dairy value chain by further improving price discovery and price risk management instruments."

More like this

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

Editorial: A new era for two co-ops

OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.

Should co-op sell its consumer brands?

OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.

Featured

'One more push' to eliminate FE

Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

New McHale terra drive axle option

Well-known for its Fusion baler wrapper combination, Irish manufacturer McHale has launched an interesting option at the recent Irish Ploughing…

Amazone unveils flagship spreader

With the price of fertiliser still significantly higher than 2024, there is an increased onus on ensuring its spread accurately at…

» Latest Print Issues Online

Milking It

Tough times

OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.

MSA triumph

OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter