EU auc­tion could steady mar­ket

Irish Examiner - Farming - - FRONT PAGE -

The Euro­pean En­ergy Ex­change ( EEX) and Global Dairy Trade (GDT) have moved to eval­u­ate the pos­si­bil­ity of set­ting up and op­er­at­ing an auc­tion mech­a­nism for dairy prod­ucts orig­i­nat­ing in Europe. If suc­cess­ful, this could help to re­duce milk price volatil­ity in the EU, by in­creas­ing scope for fixed price con­tracts.

GDT op­er­ates the lead­ing dairy auc­tion glob­ally, with over 520 reg­is­tered bid­ders from more than 80 coun­tries. EEX op­er­ates fu­tures mar­kets for Euro­pean skimmed milk pow­der, but­ter and whey p o w d e r, u s e o f w h i c h h a s steadily grown since they were set up in May, 2015.

“We be­lieve that our pro­posal can sig­nif­i­cantly ben­e­fit the dairy value chain by pro­vid­ing an­other busi­ness chan­nel for ex­ports, as well as po­ten­tially cre­at­ing un­der­ly­ing data for new risk man­age­ment in­stru­ments,” said Sascha Siegel of EEX.

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