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Arla to debut British dairy at GlobalDairyTrade auction

By Mark Astley+

03-Dec-2013

Arla Foods hopes to “maximise the value” of British milk through the sale of skim milk powder from one of its UK processing sites on the GlobalDairyTrade international dairy commodity auction platform.

The European dairy cooperative's British business, Arla Foods UK, announced yesterday that it will begin selling medium heat and low heat skim milk powder from its Westbury Dairies processing facility in Wiltshire on the GlobalDairyTrade auction from 17 December.

GlobalDairyTrade, which was established in 2008, is an auction platform for internationally-traded commodity dairy products, including milk protein concentrate, whole milk powder, skim milk powder and butter/ It claims to be the "leading price reference indicator for the products traded."

Arla's skim milk powder listing marks the debut of British dairy at the auction.

"Maximise the value of every litre"

According to Ash Amirahmadi, head of Arla Foods UK milk and member services, the company's decision to trade British skim milk powder on the GlobalDairyTrade auction will create global opportunities for its 1,600 British dairy farmer suppliers.

“The growth potential on the European markets continues to be under pressure, while the Asian markets are delivering higher returns," said Amirahmadi.

"Through Arla Foods amba, we are able to access these markets, through the auction, which allows us to maximise the value of every litre of British milk, supplied by our 3,200 British dairy farmers,” 

“The decision to include British skimmed milk powder in the auction further strengthens our ability to achieve its mission of securing the highest possible value for our farmers’ milk, while creating opportunities for their growth," he added.

"Best possible prices"

The GlobalDairyTrade auction is operated by Global Dairy Trade Holdings Limited, a wholly-owned subsidiary of Fonterra. Six companies currently trade on the GlobalDairyTrade auctions – Amul Dairy, DairyAmerica, Arla Foods, Murray Goulburn, Euroserum, and of course Fonterra.

The auctions, which are referred to as trading events, are run twice a month.

Arla Foods began trading on the auction in April 2012, which it claims enables it to "realise the best possible prices" for its farmer owners.

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