text: Subject to the approval of boards, clearance from European or any other relevant competition law authorities, and finalization of transaction documentation, the partnership is expected to be completed mid-2022, with Fonterra, NZX and EEX each holding an equal one-third (33.33%) shareholding in the global dairy auction platform.
  Fonterra chief executive Miles Hurrell said the move to a broader ownership structure marks the next step in the evolution of GDT as an independent, neutral, and transparent price discovery platform, giving it a presence in prominent international dairy producing regions, and creating future growth opportunities.
  “This is good news for our farmer owners, unit holders, and all dairy industry participants and is expected to lead to greater volumes being traded on GDT. It will bring more participants and transactions, stimulating further growth of risk management contracts available on financial trading platforms,” Hurrell said.
  “We all know that dairy is one of the most volatile traded commodities. This partnership is another step in helping to manage this risk for everyone – from the farmer through to the customer at the end of the supply chain. A more liquid dairy trading environment allows for the growth of financial tools which can be used by all participants to better manage price volatility.
  “Our focus has been about securing the best partners, and NZX and EEX share our vision for a stronger, more liquid auction platform that benefits all involved. We are also closely aligned on future possibilities for GDT as the world’s most trusted reference point for dairy commodity prices.”
  NZX chief executive Mark Peterson said the price discovery GDT provides the international dairy industry is crucial for dealing with volatility and its associated risks.
  “We see the expansion of the physical trading environment as both further strengthening existing financial contracts and enabling the creation of new tools and opportunities for dairy processors and end-users to manage price volatility. These offer clear benefits for New Zealand dairy farmers and customers around the world,” he said.
  EEX chief strategy officer Dr Tobias Paulun, said, “Becoming a shareholder of Global Dairy Trade is perfectly in line with the EEX strategy of taking asset classes which we already successfully serve to a global dimension. With our experience in operating Europe’s leading trading platform for dairy futures, but also with multiple spot contracts in the energy space, we believe that we can be of value supporting GDT’s growth vision.
  “At the same time, we can create value for the global dairy value chain by further improving price discovery and price risk management instruments.”
  GDT director Dr Eric Hansen said “GDT is excited that the addition of NZX and EEX as shareholders alongside Fonterra will enable us to build on our success in establishing a global brand and expertise in price discovery to create more opportunities for our customers.
  “The strong alignment of all three shareholding partners to GDT’s purpose of credible price discovery will support initiatives to increase liquidity on GDT, attract new supply from prominent dairy producing regions, and will strengthen GDT’s linkages to financial trading platforms.”