GDT’s market-based reference prices play an important role in allowing buyers and sellers to trade with confidence in global and regional dairy markets. As the number of sellers on GDT Events grows, our reporting of the outcome of trading events on GDT Events will progressively place greater emphasis on the publication of the regional average prices rather than individual seller prices.
Regional average prices are calculated using GDT Events market-determined winning prices for the relevant product specifications by region and will generally include all relevant sellers’ disclosed prices.
While each seller will continue to choose whether their winning prices are published individually, we have amended our policy on regional average prices to provide better protection for incoming sellers who choose not to have their individual prices published.
The amended policy means that in most cases there will be a 3-month transition period before we decide whether to include a new seller’s winning price in a regional average. The new policy also means that in most cases we will aim for each regional average to include prices from a minimum of three sellers.
The benefit of this new approach is that it removes a barrier for new sellers to join GDT Events, while not removing any regional average that we currently publish.
The above change applies only to the regional average prices and does not impact on any of the product group or other average prices published outside of the regional average framework, i.e., such averages will continue to include all market-determined prices.
The list of sellers and their products included in each regional average will continue to be published on the Results pages of GDT’s public website and are updated as required.
For more information on regional average prices, see here.