What is GDT Events
GDT Events provide a mechanism for connecting buyers and sellers from around the world. It pulls product on sale and brings demand to bear on that supply, twice monthly.
By doing this, GDT Events discover what that fair market price is, and protects both parties to the transaction from getting it wrong.
How a Trading Event works
GDT Events offers a range of dairy ingredient products from sellers around the world.
- Sellers can offer product over six different delivery time periods, known as contract periods. Each contract period represents the month of shipment.
- Before each Trading Event, sellers announce how much of each product they want to sell.
- During a Trading Event, GDT Events buyers bid the quantity they want to purchase in each contract period, through several rounds of bidding.
- Buyers place their bids by entering the quantity they wish to buy at that round’s announced price.
- There is an automated bidding option for bidders who are unable to participate while the Trading Event is underway.
- Bidders cannot join a Trading Event partway through they must participate in round one and can only maintain or decrease their total bid quantities from that point.
- At the end of each round, the total demand is calculated. If this demand exceeds supply, the Trading Manager calculates an increased price for the next round.
- This round by round process continues – the price is increased in each round and bidders submit the quantity they wish to purchase.
- The price is increased until demand equals the quantity of supply on offer.
- At the end of the last round, the final price will be the winning price that all bidders pay.
- This is the published market price.
- Each Trading Event typically lasts approximately 1.5 – 2.5 hours.
Here’s how it looks….
The process after a Trading Event is completed
Results from the Trading Event are published on the Global Dairy Trade website including the Price Index, # bidders and price percentage changes from the last Trading Event per product.
In the following days, the seller will contact the buyer to complete the contracting process, and the product is shipped through the seller's standard logistics process.