Global Dairy Trade has completed its 400th trading event, marking nearly two decades of continuous operation as a sales platform for global dairy commodities. An interview with its CEO Lloyd Cartwright

Since its launch, GDT has evolved from a price discovery mechanism into a core piece of global dairy market infrastructure. Today, participants from 131 countries have traded on the platform, and more than 500 auction participants are active. Around 12 sellers list product, with on average, 26,500 metric tonnes are sold per event, which equates to roughly 1,500 shipping containers every two weeks. Over 10 million metric tonnes have been traded in total, with more than €40 billion in product value has transacted. Each event typically concludes within 2.5 hours.

This milestone provides an opportunity to explore how a New Zealand originated platform became embedded in international dairy supply chains and how it continues to evolve as the sector digitizes. Chief executive officer Lloyd Cartwright discussed with Dairy Industries International about what the 400 events represent for New Zealand’s dairy sector, the evolution of the platform over 18 years, and the role GDT now plays in delivering transparent, market driven pricing signals globally.

Q. How has the GDT evolved?

Lloyd Cartwright: GDT continues to hold a valued position in the dairy ecosystem, consistently delivering trusted and transparent price signals. Awareness in the dairy community has increased over time, particularly in recent years following Fonterra reducing its shareholding to 33 per cent and bringing in trusted and regulated exchange partners in EEX and NZX.

At its nucleus, GDT started as a price discovery engine and has evolved into much more. It now supports price discovery, sales channel optimisation and derivative exchange settlement. Our intention is to continue to evolve the role we play in the dairy ecosystem, enhancing our data offering while leaning on 18 years of rich historical data. We strongly believe there is no better indicator of price than a real traded price, and GDT consistently leads the market in this respect.

Q. How many types of contracts are there now?

LC: GDT supports a range of contract types across its platforms, including forward contracts through our trading events, shorter-term opportunities through GDT Pulse, and the use of GDT prices in derivative market settlement. The product and contract offering has evolved over time alongside the platform, reflecting the needs of buyers and sellers in global dairy markets.

Q. What is the biggest challenge you face, and what do you consider your greatest achievement so far?

LC: Our biggest challenge and opportunity is to continue to evolve the platform to ensure we understand and solve problems for our customers. This is particularly relevant as dairy markets globally continue to digitise and processors and buyers alike seek greater efficiencies. Our greatest achievement has been delivering consistency over time. GDT has operated consistently over a long period and now plays an important role in the dairy ecosystem, delivering pricing signals, outcomes for markets and an additional sales channel for our customers.

Q. What do you expect to occur with digitisation of the industry?

LC: The digitisation of dairy markets will continue, ultimately improving derivative and hedging activity and making GDT’s role more important, not only from a price discovery perspective but also as an efficient and cost-effective sales channel. As markets become more digital, buyers and processors will increasingly seek efficiency, better data and more integrated ways of managing price risk. That includes greater use of real-time information, stronger links between physical and financial markets, and more reliance on transparent, market-based pricing.

We also expect to see increased participation in derivative markets, supported by the need for reliable reference prices. In that context, the role of platforms such as GDT becomes more important, as they provide real traded prices that the market can trust. Our intention is to continue evolving the platform to meet those needs, enhancing our data offering while leaning on 18 years of historical data, and ensuring we remain aligned with how the dairy ecosystem continues to digitise.

Q. What are the key components on the platform?

LC: For dairy processors, the key components are transparency, access to global demand and the ability to transact efficiently through a structured platform. Core commodities such as whole milk powder and skim milk powder are among the most widely traded products, given their importance in global dairy markets and pricing.

Q. Outlook for this trading?

LC: The digitisation of dairy markets will continue, ultimately improving derivative and hedging activity and making GDT’s role more important, not only from a price discovery perspective but also as an efficient and cost-effective sales channel. Increased protein sophistication and demand, along with the continued commoditisation of these products, will bring new players into global markets. We continue to expand our presence globally, with opportunities to grow participation across multiple geographies. The “why GDT” continues to anchor around being consistent, transparent and solving the problems of our customers.