case study: arla foods ingredients. - … · case study: arla foods ingredients. in 2015 arla foods...
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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