Overview For the first time, the dairy industry has a central exchange to trade a variety of dairy commodities--a single place for all buyers and sellers to post their needs and availability. This aids sellers as they seek the highest value use of their product, buyers as they seek the best available supplies and both in establishing the fair market price. Further, it operates in real-time with matching logic that assists traders in finding the best deals within the time constraints implied by short-shelf-life commodities. The Dairy.com Spot Markets are fully integrated with internal scheduling, long-term contract management, and logistics tools for determining net-landed cost and net-landed revenue.
Benefits
The dairy industry is characterized by uncontrollable demand and supply, short shelf-life commodities that can't be inventoried, and large numbers of trading companies and facilities. These factors combined with an environment of continually shifting market conditions make it very difficult for companies to find the highest value use of product or the best deal on available supply. Dairy.com uses the Internet to create a single exchange for all buyers and sellers, and employs sophisticated load-matching logic to provide a realistic means for every buyer, seller and broker to find the best possible deal anywhere in the industry. It is a valuable tool for increased profitability, flexibility and efficiency.
Market Visibility and Efficiency
In today's world of manual trading, visibility is limited to the number of phone calls a trader can make, with limited certainty of whether or not the best deal has been made. The Dairy.com Spot Markets are open to everyone and trading dairy commodities has never been easier. Companies large and small, trading firms and individuals all have equal access to the market and may easily create "buy" or "sell" positions in a few minutes that instantly reach an audience of hundreds of potential trading partners. The trading site is secure and offers a high degree of anonymity. Sellers and buyers can expand trading relationships, trade at the speed of light and know they are getting the best market price.
Simple to Use
Using Dairy.com is as easy as Post, Negotiate, and Confirm. With a few clicks of the mouse, traders can post supply or demand of commodities to the entire dairy industry. After posting loads, traders can view real-time "matches"and negotiate by making anonymous and private offers and counters. Either side of the negotiation can then "take" the best deal. It's that simple.
Pricing and Membership
Pricing for the Dairy.com is both simple and inexpensive. An annual seat fee is charged to a company for the right to access the member area of Dairy.com, providing a company with full visibility to commodity scheduling and trading, and availability, as well as market indices, industry news, editorials and other links. Dairy.com also charges a commission for each load successfully traded over the exchange. In addition to facilitating external trades among member companies, Dairy.com provides the ability to coordinate and manage internal and long-term contract trades among existing internal plants or long-term trading partners. These trades are charged a "transfer fee". There is no software to load on your computer and the setup process takes less than 20 minutes.