Global Dairy Trade Biannual Chart Focus Update – Sep…
Global Dairy Trade (GDT) recently released their biannual Chart Focus report, which includes updated data through Sep ’16 on several key indicators within the GDT. Information on the distribution of sales, participating bidders and quantities sold were included within the report.
Distribution of Sales
Volumes sold by product as a percentage of total product sold declined on a YOY basis for the second consecutive year for whole milk powder (WMP) while increasing most significantly for skim milk powder (SMP) and anhydrous milkfat (AMF). Despite the YOY decline, WMP continued to account for nearly half of the total GDT volume for the third consecutive year.
Product was sold from Fonterra (New Zealand), Dairy America (U.S.), Amul (India), Murray Goulburn (Australia), Arla (Europe) and Euroserum (Europe). Molkerei Ammerland withdrew from selling products on the auction platform during Apr ’15 and Land O ‘Lakes exited the exchange in Aug ’15.
Volume sold by Contract Period (CP) was largely unchanged from the previous year. Contract Periods refer to the month when product is shipped. Product sold in CP1 is shipped in the month after the trading event when it was purchased and CP2 is shipped two month after, etc. Nearly two thirds of volumes sold have occurred within the first two Contract Periods throughout the past three years.
Participating Bidders
Market share of participating bidders by region continued to increase on a YOY basis in North Asia and South East Asia & Oceania while declining YOY in the Middle East & Africa and the Americas. Bidders in North Asia and South East Asia & Oceania combined to account for over half of the total bidders throughout the most recent year.
Participating bidders who actively bid on product in at least one trading event over 2015 declined across all major products offered within the GDT with the exception of cheddar cheese. Additional declines in participating bidders have been experienced across all major products offered within the GDT with the exception of butter over the first nine months of 2016.
Quantities Sold
Combined quantities sold for all products within the GDT also continued to remain lower on a YOY basis. Total quantities sold for all products declined 28.0% YOY throughout 2015 and are down an additional 10.8% YOY throughout the first three quarters of 2016, although YOY declines have been more minimal over recent months.
Of the major products offered within the GDT, cheddar cheese volumes have declined most significantly on a YOY basis throughout the first three quarters of 2016, followed by YOY declines in WMP, butter, SMP and AMF.
Product was sold from Fonterra (New Zealand), Dairy America (U.S.), Amul (India), Murray Goulburn (Australia), Arla (Europe) and Euroserum (Europe). Molkerei Ammerland withdrew from selling products on the auction platform during Apr ’15 and Land O ‘Lakes exited the exchange in Aug ’15.
Volume sold by Contract Period (CP) was largely unchanged from the previous year. Contract Periods refer to the month when product is shipped. Product sold in CP1 is shipped in the month after the trading event when it was purchased and CP2 is shipped two month after, etc. Nearly two thirds of volumes sold have occurred within the first two Contract Periods throughout the past three years.
Participating Bidders
Market share of participating bidders by region continued to increase on a YOY basis in North Asia and South East Asia & Oceania while declining YOY in the Middle East & Africa and the Americas. Bidders in North Asia and South East Asia & Oceania combined to account for over half of the total bidders throughout the most recent year.
Participating bidders who actively bid on product in at least one trading event over 2015 declined across all major products offered within the GDT with the exception of cheddar cheese. Additional declines in participating bidders have been experienced across all major products offered within the GDT with the exception of butter over the first nine months of 2016.
Quantities Sold
Combined quantities sold for all products within the GDT also continued to remain lower on a YOY basis. Total quantities sold for all products declined 28.0% YOY throughout 2015 and are down an additional 10.8% YOY throughout the first three quarters of 2016, although YOY declines have been more minimal over recent months.
Of the major products offered within the GDT, cheddar cheese volumes have declined most significantly on a YOY basis throughout the first three quarters of 2016, followed by YOY declines in WMP, butter, SMP and AMF.