Arla Foods signs up to use Fonterra's GlobalDairyTrade platform

Thursday 15th December 2011

Arla Foods, the European dairy cooperative, will start selling skim milk powder on Fonterra Cooperative Group’s online trading platform in April next year.

The Viby J-based group joins Australian dairy cooperative Murray Goulburn and US marketing company DairyAmerica in using Fonterra’s GlobalDairyTrade platform to sell its product, which has aspirations to set worldwide prices for dairy products.

“We believe that the growth potential on the European markets will continue to be under pressure in the years to come, and we are therefore increasing our focus on the growing markets in the Middle East, Africa and Asia,” Arla Foods chief executive Peter Tuborgh said in a statement. “We believe that customers will appreciate the opportunity to source Arla Foods products on the GDT auction platform.”

Fonterra expanded its own range of products sold via GDT this year to include milk protein concentrate (MPC), rennet casein and cheese from July 19. It also sells anhydrous milk fat, butter milk powder, skim and whole milk powder.

The New Zealand dairy cooperative said the addition of Arla Foods will deepen the platform’s liquidity, which it says will now sell product from all major dairy exporting regions, being America, Europe, Australia and New Zealand.

Arla Foods will initially sell low heat and medium heat products, and will boost its offering over time.

The first auction of its skim milk powder will be on April 3.

Arla Foods is owned by German, Swedish and Danish Farmers, and has production facilities in 13 nations. This year, it grew by merging Germany’s Hansa-Milch AG and Sweden’s Milko.

Its net turnover is 49 billion Danish krone, according to the cooperative’s website, which equates to NZ$11.4 billion at today’s exchange rate. Fonterra reported annual revenue of NZ$19.9 billion in the 2011 financial year.

BusinessDesk.co.nz

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