GDT public consultation on rule change proposals

By Jim Cornall contact

- Last updated on GMT

Feedback submissions on the proposed changes must be received by June 20, 2018. Pic: ©Getty Images/Freer law
Feedback submissions on the proposed changes must be received by June 20, 2018. Pic: ©Getty Images/Freer law

Related tags: Gdt price index, Milk

Global Dairy Trade (GDT) is looking for feedback on two proposed changes to the GDT Trading Event Rules, which it says are designed to bring price transparency to more supply regions through increased participation from sellers.

The GDT Events Oversight Board has reviewed the two proposals and will vote on them following completion of public consultation.

The first rule change proposal will enable an average winning price to be published as a substitute, or in addition, to each seller’s individual winning prices being published.  The new rule will enable each seller to decide whether their individual prices are published, while ensuring that price transparency is maintained through the publication of market-relevant average prices.

Increased transparency

GDT said the change will support the spread of price transparency and address one of the elements that deters some sellers from various regions from participating on the platform.  This includes the US lactose offering on GDT Events, which is expected to relaunch without needing to pool supply across multiple sellers. 

Current sellers including Amul, Arla, Arla Foods Ingredients and Fonterra have confirmed that they will continue to publish individual winning prices.

The second rule change proposal will amend an existing rule to close a loophole by which bidders can view pre-event data for products they are restricted from buying.

Feedback must be submitted via email to uryc@tybonyqnvelgenqr.vasb​ with the subject line: "Feedback on proposed rule changes June 2018." Submissions close on June 20, 2018.

Related topics: Markets, Pricing Pressures, Nutritionals

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