Tuesday, 22 February 2022 11:55

Fonterra opens up GDT to key investors

Written by  Staff Reporters
The NZX and the EEX are set to take an equal one-third ownership of Global Dairy Trade, launched by Fonterra in 2008. The NZX and the EEX are set to take an equal one-third ownership of Global Dairy Trade, launched by Fonterra in 2008.

Fonterra is opening up ownership of its successful global dairy auction platform to two strategic partners.

The New Zealand's Exchange (NZX) and the European Energy Exchange (EEX) are set to take an equal one-third ownership of Global Dairy Trade (GDT), launched by the co-op in 2008 and which has to date traded dairy products worth over US$30 billion.

The deal is subject to the approval of boards, clearance from European or any other relevant competition law authorities, and finalisation of transaction documentation. It is expected to be completed mid-2022.

Fonterra chief executive Miles Hurrell says the move to a broader ownership structure marks the next step in the evolution of GDT.

It further enhances the standing of GDT as an independent, neutral and transparent price discovery platform, giving it a presence in prominent internatinal dairy producing regions, and creating future growth opportunities, says Hurrell.

"This is good news for our farmer owners, unit holders, and all dairy industry participants and is expected to lead to greater volumes being traded on GDT.

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

"We all know that dairy is one of the most volatile traded commodities," he says.

"This partnership is another step in helping to manage this risk for everyone - from the farmer through to the customer at the end of the supply chain.

"A more liquid dairy-trading environment allows for the growth of financial tools which can be used by all participants to better manage price volatility."

Hurrell says Fonterra's focus has been about securing the best partners and that NZX and EEX share the co-op's vision for a stronger, more liquid auction platform that benefits all involved.

More like this

A great outcome - Hurrell

Fonterra chief executive Miles Hurrell says the sale of the co-op’s consumer and associated businesses to Lactalis represents a great outcome for the co-op.

Featured

Hort industry dishes out awards

Research and healthcare initiatives, leadership and dedication to the sector have been recognised in the 2025 Horticulture Industry Awards.

Manuka honey trader posts sour results

Manuka honey trader Comvita slumped to a $104 million net loss last financial year, reflecting prolonged market disruption, oversupply and pricing volatility.

Poultry industry, Govt sign landmark biosecurity deal

The Government has struck a deal with New Zealand's poultry industry, agreeing how they will jointly prepare for and respond to exotic poultry diseases, including any possible outbreak of high pathogenicity avian influenza (HPAI).

National

Machinery & Products

» Latest Print Issues Online

Milking It

Dreams aren't plans

OPINION: Milking It reckons if you're National, looking at recent polls, the dream scenario is that the elusive economic recovery…

Fatberg

OPINION: Sydney has a $12 million milk disposal problem.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter