US dairy marketing firm DairyAmerica is to start selling products on GlobalDairyTrade, the auction platform for dairy commodities devised by Fonterra.
DairyAmerica, which sells commodities made by four US dairy co-operatives, will offer products on the site from October.
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A statement issued by Fonterra today (21 July) said DairyAmerica’s participation was a “significant development” for the platform.
Fonterra announced in March that it was opening up the site to other processors. Dairy companies including Arla Foods and FrieslandCampina helped develop draft rules to allow more than one seller to use the platform, although they stopped short of joining the site. The guidelines were published last week.
“These rules lay the foundation for other new sellers to join GlobalDairyTrade and we expect that this will happen over the next year,” GlobalDairyTrade general manager Paul Grave said.
DairyAmerica’s members include Agri-Mark, California Dairies, O-AT-KA Milk Producers and United Dairymen of Arizona.
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By GlobalDataRich Lewis, DairyAmerica’s CEO, said the company would manage a “significant proportion” of its export business through the platform. The firm’s exports account for around 45% of the non-fat dry milk and skim milk powder made in the US.
“GlobalDairyTrade’s open trading platform provides us with the opportunity to establish our export business independently and have access to worldwide bidding demand on our first day of business,” Lewis said.
