The pool of US sellers offering lactose on GDT Events will temporarily cease offering the product while options to enhance effectiveness are considered.
Global Dairy Trade established the pool in December 2017 following consultation with US dairy buyers and sellers, exploring the feasibility of creating a multi-seller pool to offer supply of standard product specifications on GDT Events.
Eric Hansen, Director Global Dairy Trade said while the multi-seller pool had been welcomed as a method to generate a price discovery mechanism for an important US dairy product, it had achieved published prices in only three out of the 11 auctions.
“The US lactose pool was a new concept for sellers and buyers. Despite strong initial interest from the buyer community, we acknowledge that the demand has been limited by some features of the pooled approach and that significant enhancements or a new approach may be required.”
GDT has consulted buyers and sellers of lactose on the limitations of the current approach and will discuss options to enhance effectiveness at the GDT Events Oversight Board meeting being held in Shanghai on 16 May.
“We will continue providing updates as we work towards relaunching US lactose on GDT Events in due course,” said Mr Hansen.