Global Dairy Trade strengthens independence

By Jim Cornall

- Last updated on GMT

GDT's director says that the new governance means more transparency. Pic: ©iStock/Freer law
GDT's director says that the new governance means more transparency. Pic: ©iStock/Freer law

Related tags Management

New governance principles to monitor GDT Events, the twice-monthly auction held by Global Dairy Trade (GDT), have been approved by the GDT Events Oversight Board, at its second meeting held at SIAL Paris, the international food event.

Bill Shields, chair of the GDT Event Oversight Board, said that establishing the governance principles is an important milestone on the journey to implement best practice governance of GDT Events.

The new governance principles will enhance the board’s monitoring to: ensure conflicts of interest are identified and disclosed; provide transparency on methods used in the price discovery process; ensure appropriate control and reporting processes are in place; maintain anti-trust compliance and market surveillance practices appropriate to GDT Events as a global auction platform; and provide regular audit and review against the governance principles.

Increased transparency

“The new governance principles strengthen Global Dairy Trade’s independence, ensuring that the business is consistent with best practice for providers of market-based reference prices,”​ Shields said.

“The board’s composition, which includes representatives of leading global dairy industry participants and financial markets, means it is well placed to support the platform’s independence, as well as its continued development.”

Eric Hansen, director GDT, said the new governance principles lead to increased transparency.

He added that one of the first outcomes from this work is the paper “Summary of price discovery process,” which gives stakeholders a deeper understanding of how the winning prices are discovered during the GDT Events auctions.

GDT structure
The structure of the GDT board

Related news

Show more