Soon after introducing an electronic trade platform for the farmers to sell milk to the highest bidder, the Milk Exchange platform in Australia has extended its offerings to dairy processors by giving them a chance to sell their produce to food companies.
For the record, Milk Exchange (MX) was established by an Australian independent company- Milk2Market for the regional dairy industry to create a transparent digital supply solution for both milk suppliers and the buyers.
Recently, the board unveiled the Dairy Trades trading facility providing processers an online clearinghouse to attract bids from food companies on various products, ranging from powder to butter and milk.
Notably, the trading platform will showcase the local demand and supply at any given time in the milk commodities market along with an attractive selling option for surplus products.
In addition to the above, participants can also participate in weekly, monthly or yearly contracts or trade the monthly production volume forecasts within the 10 product categories and 37 product listings, available on the channel.
With the first year of its launch, Milk Exchange has witnessed the registration of nearly 500 farmed and dairy companies and has facilitated the trade of approximately 100 million liters of farm milk, across Australia.
According to Mr. David Green, Chairman of Milk Exchange, by using simple trading procedures, latest technology, and remote access capabilities to link the dairy sellers and buyers, Dairy Trades will witness widespread adoption.
He further added that the novel concept will help ease the process of buying and selling milk and milk-based products, along with making it reliable and cost-effective for the entire industry.
Reportedly, Dairy Trades @ Milk Exchange operates using Microsoft software which is used by nearly 95 percent of the Fortune 500 companies. By adopting the secure cloud-based system developed by Microsoft, the buyers and sellers have remote access to the portal, and through the mobile applications.
It is worth mentioning that, through the new trade platform, Milk Exchange expects to provide future contracts, assuming it receives an Australian Financial Service license in the next financial year to participate in the Australian Milk Price Initiative- a federal government-led price risk management proposal.