An Internet-based electronic trading platform for dairy products
Auctions & Competitive Bidding
Challenge: New Zealand’s Fonterra Co-operative Group Limited, the world’s leading dairy exporter, needed improved price transparency, forward price information, and enhanced price risk management for itself and its customers.
Solution: CRA designed and developed the electronic trading platform GlobalDairyTrade (GDT), which includes both a public information Website and a secure bidding Website. It is based on sound economic and auction theory as well as extensive CRA experience in auctions and market designs. CRA also is the independent Trading Manager in charge of the trading events in which customers from around the world regularly participate. In addition to Fonterra, GDT has grown to include other sellers, such as Arla Foods, DairyAmerica, and Murray Goulburn. The multi-seller, multi-buyer GDT trading events produce benchmark prices relied on by the dairy industry.