The recent launch of a national digital milk market, Milk Exchange, will create significant changes in the dairy industry. The new market platform was developed by Milk2Market in order to create a more transparent digital supply chain for milk and introduce more flexible buying options. This is a response to struggles faced by the industry, such as a lack of market price transparency. Transparency was one of the main concerns raised by the ACCC following a recent inquiry. Further, Milk Exchange addresses the reduced volume of milk production due to the drought, by promoting an open trade across all states. The scheme is expected to be particularly useful for smaller processors who will be able to go directly to producers. For these reasons, the Australian Dairy Farmers have expressed support for the platform. It operates similarly to existing online trading facilities such as livestock marketplace, AuctionPlus. Buyers and sellers are required to register online to use Milk Exchange and comply with various requirements. For example, buyers may be required to pay initial sums to commit to the trade and sellers will need to commit to a minimum supply of milk. All transaction values are published on Milk Exchange. Overall, people involved in the dairy supply chain are expected to benefit strongly from being able to gain a better understanding of the demand and price of milk.
New Digital Milk Market Changing the Industry
Nov 19, 2019