EEX and GDT move toward European dairy auction JV

By Jim Cornall contact

- Last updated on GMT

The first auction would take place in 2020 if the joint venture goes ahead.
The first auction would take place in 2020 if the joint venture goes ahead.

Related tags: Gdt price index, Fonterra, Dairy

The European Energy Exchange (EEX) and Global Dairy Trade (GDT) have concluded the initial consultation period regarding the establishment of a joint venture to operate a European-based auction mechanism for European dairy products.

The EEX and GDT said the initiative received a high level of interest in the market during the evaluation process. To date, EEX and GDT have met with more than 50 participants of the dairy value chain, both sellers and buyers across France, Germany, Ireland, the Netherlands, Scandinavia, Switzerland, the UK and buyers from Asia.

Following the completion of the market consultation and initial evaluations with potential IT partners, EEX and GDT will now enter the next phase of the project to further develop the scope of possible services, obtain commitments from potential customers, validate commercial viability and agree a partnership arrangement.

Launch in 2020

Final decisions by both partners on the initiative are expected by mid 2019. If the venture goes ahead, the first auction would take place in 2020.

EEX is an energy exchange in Europe that develops, operates and connects secure, liquid and transparent markets for energy and related products. As part of EEX Group, a group of companies serving international commodity markets, EEX offers contracts on power and emission allowances as well as freight and agricultural products. EEX is part of Deutsche Börse Group.

GDT is a wholly-owned subsidiary of New Zealand-based Fonterra Cooperative Group Limited.

Related topics: Markets, Commodities, Fonterra

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