Arla Foods to Start Offering Skim Milk Powder on GDT Pulse

Global Dairy Trade (GDT) has announced that Arla Foods will introduce European-sourced skim milk powder (SMP) to the GDT Pulse platform starting next month. This move is a major development as Arla becomes the first additional seller on the platform since its launch in August 2022 by GDT and Fonterra.

GDT Pulse, which offers shorter and more frequent auctions, aims to provide additional price discovery for core dairy commodities. The auctions occur in 10-to-20 minute sessions complementing regular GDT events. Fonterra, which initially offered SMP, whole milk powder (WMP) regular, and instant, now sees Arla joining to expand the platform's offerings.

Arla's inaugural GDT Pulse auction is scheduled for May 12, and its inclusion represents "a major step in broadening the platform's reach," according to officials. Arla Foods, a co-op owned by around 8,000 farmers spread across several European countries, has been participating in GDT since 2012.

Thomas Carstensen, senior VP of Arla Foods, stated that joining GDT Pulse aligns with their sales strategy, allowing for "a flexible new way to connect with customers." He added that they are eager to see how this development supports their global buyers.

Moreover, in a significant industry move, Arla Foods and the German DMK Group recently announced a proposed merger, aimed at creating the "strongest dairy cooperative in Europe" with a combined revenue goal of €19 billion. This merger, subject to board and regulatory approval, would position the new entity, headquartered in Denmark under the Arla name, as a formidable player in the dairy sector.