Arla Foods Ingredients will be making its lactose ingredients available through the Global Dairy Trade (GDT) online auction platform from 15 April 2015.
More than 900,000 tons of dairy ingredients are traded each year on GDT, the majority in the form of milk powder.
However, limited volumes of lactose are currently sold through the platform.
“GDT attracts more than 650 qualified buyers from more than 90 countries, and yet at present they have very little access to lactose through the platform,” says Arla Foods Ingredients sales director Luis Cubel.
“Arla Foods, our parent company, already trades skimmed milk powder on GDT so we know how effective it can be in terms of reaching existing and new customers. Our move into lactose will enhance our position in the market.”
GDT is open for bidders twice a month via an online auction.
Sellers announce the volume of product available and the starting price, and bidders submit bids on the volume they would like to buy at that price.
If demand exceeds supply, the trading manager then increases the price for the next round.
This continues round by round in an ascending price clock auction until all bidding has ceased.