CASE STUDY: ARLA FOODS INGREDIENTS.

In 2015 Arla Foods Ingredients (AFI), a global leader in natural whey ingredients based in Denmark, began producing more lactose than they had done in the past.They needed to look for alternative distribution channels. After seeing their parent company Arla’s success selling skim milk powder on GDT Events, they began using the auction platform to offer three lactose specifications.

Luis Cubel.VP Commercial.Arla Foods Ingredients.

We would recommend GDT Events to sellers who are looking to expand their customer base and have consistent product to offer.

““

GROWING SUCCESSSince their first Trading Event, AFI have been pleasantly surprised with the global demand for lactose on the platform, prompting them to steadily increase the volume they offer.

A RELATIONSHIP PRODUCING RESULTSToday, AFI consistently offer 500MT of lactose each Trading Event, to bidders from over 80 countries.

They currently clear 98% of the lactose offered and the higher prices and access to new customers has helped them meet their internal sales goals – even during difficult times in the marketplace.

Qua

ntit

y (M

T)

200

250

300

350

400

450

500

Apr 16

Oct 16

Apr 15

Increased offer quantities to 500 MT twice each month from April 2016

98%LACTOSE

CLEARANCE RATE

Average fromAugust 2015 - August 2016

Offered 300 MT twice each month for the first year

NOVEMBER 2016

LACTOSE CLEARANCE RATES (GDT EVENTS)

www.globaldairytrade.info

01 NEW CUSTOMERS

02 GLOBAL REACH

03 PRICE DISCOVERY

04 THE RIGHT PRICE

05 PROFESSIONAL INTEGRITY

Morten Hass Kansen. Director of General FoodsArla Foods Ingredients.

“ GDT Events has enabled us to expand our customer base and access new demand.”

“ We can sell to a large, geographically dispersed pool of customers in a few hours.”

“ We bought into having a visible price to form a clearer picture of the overall lactose market.”

“ Both seller and buyer get the right market price at the time of offering.”

“ Global Dairy Trade are very professional and they work in a transparent way.”

www.globaldairytrade.info

800

750

700

650

600

550

500

450

400

850

Aug 15

Sep 15

Oct 15

Nov 15

Dec 15

Jan 16

Feb 16

Mar 16

Apr 16

May 16

Jun 16

Jul 16

Aug 16

Sep 16

Oct 16

GDT Average Price (USA/MT)

USDA Price (USD/MT)

LACTOSE PRICE COMPARISON (GDT v USDA)

Pric

e (U

S$

/MT)

LACTOSE PRICE COMPARISON The average prices achieved on the twice-monthly GDT Events have been consistently higher than USDA published prices.

WHAT VALUE DOES GDT EVENTS BRING TO AFI? Morten Hass Kansen explains the key benefits AFI has experienced since joining GDT Events.

CASE STUDY: ARLA FOODS INGREDIENTS. NOVEMBER 2016