Arla Foods to launch skim milk powder on GDT Pulse platform

Global Dairy Trade (GDT) has announced that Arla Foods, a leading dairy cooperative, will begin offering European-sourced skim milk powder (SMP) on the GDT Pulse platform starting next month. 

Reported by Agriland, this development marks a significant step in broadening the platform’s scope, with Arla becoming the first additional seller alongside Fonterra, which currently offers SMP and whole milk powder on the platform.

Arla Foods, owned by approximately 8,000 farmers across Denmark, Sweden, Germany, Luxembourg, Belgium, the Netherlands, and the UK, is set to participate in its first GDT Pulse auction on May 12. 

According to GDT, the inclusion of Arla is expected to boost the platform’s momentum, providing buyers with greater access to high-quality European dairy products. 

“Their participation will expand opportunities for buyers and add further momentum to the GDT Pulse pilot,” a GDT spokesperson stated, highlighting the cooperative’s role in advancing the platform’s global presence.

The GDT Pulse platform, a more frequent and streamlined auction system compared to traditional GDT events, allows for smaller, regular transactions, making it easier for buyers to secure dairy products efficiently. 

Arla’s decision aligns with its strategy to strengthen its position in the global dairy market, leveraging the platform’s flexibility to meet growing demand for SMP, a key ingredient in products like infant formula and baked goods. 

In 2024, Arla reported revenues of US$14.7 billion and processed 13.7 billion kilograms of milk, underscoring its capacity to supply substantial volumes to international markets.

This move comes amid Arla’s broader efforts to enhance its market presence, including a proposed merger with Germany’s DMK Group, announced last week. 

According to Bloomberg, the merger aims to create Europe’s strongest dairy cooperative, combining over 12,000 farmers and targeting a combined revenue of US$20.2 billion. 

“This partnership will strengthen our ability to compete globally and deliver value to our farmers,” said Arla’s CEO, Peder Tuborgh.

Industry analysts view Arla’s entry into GDT Pulse as a strategic response to evolving market dynamics, with global SMP demand projected to grow steadily. 

A report by Global Dairy Trade noted that the platform’s expansion could stabilize prices and improve transparency in dairy trading. 

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