GDT halts US lactose sales due to limited demand

14-May-2018 - Last updated on 14-May-2018 at 05:38 GMT

GDT will discuss options at the GDT Events Oversight Board meeting in Shanghai on May 16.Pic: ©iStock/Freer law

Global Dairy Trade (GDT) Events has temporarily stopped the US pool offering lactose to look at ways to improve effectiveness after achieving published prices only three times at auctions since the pool was established less than six months ago.

GDT established the pool in December 2017 following consultation with US dairy buyers and sellers, exploring the feasibility of creating a multi-seller pool to offer supply of standard product specifications on GDT Events.

Eric Hansen, GDT director, said while multi-seller pool had been welcomed as a method to generate a price discovery mechanism for an important US dairy product, it had achieved published prices in only three out of the 11 auctions.

“The US lactose pool was a new concept for sellers and buyers,” Hansen said.

“Despite strong initial interest from the buyer community, we acknowledge that the demand has been limited by some features of the pooled approach and that significant enhancements or a new approach may be required.”

GDT said it has consulted buyers and sellers of lactose on the limitations of the current approach, and will discuss options at the GDT Events Oversight Board meeting in Shanghai on May 16.

“We will continue providing updates as we work towards relaunching US lactose on GDT Events in due course,” Hansen said.