Winston Peters calls Fonterra vote result 'utter madness'
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
GlobalDairyTrade (GDT) is in talks with the European Energy Exchange (EEX) and the parties have signed a letter of intent.
GDT runs twice-monthly auctions for generic, large-volume products, attracting at least 520 registered bidders from 80 countries.
EEX’s offering of European dairy products includes financially settled futures on skimmed milk powder, butter and whey powder.
Since the launch of agricultural products in mid-May 2015, the EEX derivatives market for dairy products is said to have continuously achieved record volumes and grown steadily, becoming the leading exchange market for dairy risk management in Europe.
EEX and GDT plan to consult with dairy product buyers and sellers on jointly offering price discovery for European dairy products via an auction designed for that market.
EEX head of agricultural commodities Sascha Siegel says such an auction could benefit the dairy value chain by providing another business channel for exports, and by creating data for new risk management instruments.
“With its expertise in dairy auctions, Global Dairy Trade is the ideal partner for such a project,” Siegel says.
GDT director Eric Hansen says EEX is highly respected and the only European market operator recording large numbers of dairy futures contracts.
“We look forward to exploring the potential for a joint initiative that would enable us to better meet the needs of European buyers and sellers,” Hansen said. “This initiative forms an important part of our growth strategy.”
