British dairy commodities will be traded on the Global Dairy Trade auction for the first time later this month, opening the door to increased international trade.
Set up in 2008, the auction provides a platform for buying and selling internationally traded dairy commodities.
Arla Foods UK will begin selling skimmed milk powder on the GDT site from 17 December through its parent company, Arla Foods amba, which began offering products on the GDT in April last year.
Dairy’s growth potential on European markets continued to be under pressure, while Asian markets were delivering higher returns, said Ash Amirahmadi, head of Arla UK milk and member services.
“Through Arla Foods amba, we are able to access these markets through the auction, which allows us to maximise the value of every litre of British milk, supplied by our 3,200 British dairy farmers.”
The milk powder entered into the auction will be processed at Westbury Dairies, Arla’s joint venture with First Milk.
Selling products globally via the auction allowed Arla to realise the best possible prices for them and in turn it was able to pay a leading milk price to its farmer owners, Arla added.
“The decision to include British skimmed milk powder in the auction further strengthens our ability to achieve Arla’s mission of securing the highest possible value for our farmers’ milk, while creating opportunities for their growth,” Amirahmadi said.
Source: The Grocer