Arla Foods Ingredients to offer lactose in Global Dairy Trade auction

Arla Foods Ingredients is set to sell lactose ingredients through the Global Dairy Trade (GDT) online auction platform for the first time as part of its bid to become the world’s leading lactose supplier.

More than 900,000 tonnes of dairy ingredients are traded each year on GDT, the majority in the form of milk powder. However, only limited volumes of lactose are currently sold through the platform. Arla Foods Ingredients intends to start selling lactose via GDT from 15 April 2015.

“GDT attracts more than 650 qualified buyers from more than 90 countries, and yet at present they have very little access to lactose through the platform. We can fill this gap in the market by offering our high quality lactose through GDT, which will boost our efforts to become market leader in the global lactose ingredients sector," says Luis Cubel, Sales Director for Arla Foods Ingredients’ Permeate & Lactose Business.

“Arla Foods, our parent company, already trades skimmed milk powder on GDT so we know how effective it can be in terms of reaching existing and new customers. Our move into lactose will enhance our position in the market,” he says.

GDT is open for bidders twice a month via an online auction. Sellers announce the volume of product available and the starting price, and bidders submit bids on the volume they would like to buy at that price. If demand exceeds supply, the Trading Manager then increases the price for the next round. This continues round by round in an ascending price clock auction until all bidding has ceased.

Arla Foods Ingredients’ decision to offer lactose through GDT comes at a time when the company is in the process of significantly increasing its lactose volumes. The official opening of Arla Foods Ingredients’ new lactose factory in Jutland, Denmark, took place in November 2014. When fully operational it will take Arla Foods Ingredients’ total lactose output – including that produced through joint-ventures – to 115,000 tonnes during 2015.

Facts about Arla Foods Ingredients:

- Arla Foods Ingredients Group P/S is a 100% owned subsidiary of Arla Foods, a global dairy company and cooperative owned by dairy farmers in Denmark, Sweden, the UK, Germany, Belgium and Luxembourg.
- Arla Foods Ingredients is a global leader in natural whey ingredients for products in a range of categories – from bakery, beverages, dairy and ice cream to clinical, infant and sports nutrition.

Arla Foods is a global dairy company and co-operative owned by 13,500 dairy farmers circa 3,000 of whom are British.

Dating back to 1881, Arla’s purpose is to secure the highest value for its farmers’ milk, while creating opportunities for their growth. With production facilities in 11 countries and sales offices in a further 30, Arla is the world’s sixth largest dairy company and largest supplier of organic dairy products. Arla has a total of more than 18,000 colleagues and its products are sold under the well-known brands Arla®, Lurpak® and Castello® in more than 100 countries.

Arla Foods UK is the largest dairy company in the country and is home to leading dairy brands Anchor, Cravendale, and Lactofree. It processes 3.5 billion litres of milk a year and has a turnover of £2.2 billion. As well as being number one in fresh liquid milk, butter, spreads and cream, Arla is the UK’s largest cheese manufacturer. It has also built the world’s largest fresh milk facility located at Aylesbury and has plans for it to be the first zero carbon site of its kind. The UK business has a team of approximately 4,000 colleagues located at its dairies, distribution centres and head office.