Web-based dairy supply chain solutions and market intelligence leader Dairy.com announced significant product enhancements for its online trading exchange. The addition of new features and rollout of a new pricing model count among the most important changes made to the platform since its debut in 2001.
Following industry testing and feedback, Dairy.com is releasing its much-anticipated Physical Settlement and Pricing enhancement. “Settlement” automates the process around reconciling weights and tests and valuing cream loads – a critical but time-consuming process for the industry until now.
With Dairy.com Physical Settlement and Pricing, each cream load simply requires entry of shipped and received weights and component tests by the corresponding parties; the rest is automatic. It’s important to note that, from the perspective of either party, the result is one-step settlement, providing consistent, high-quality settlement and load value records for both parties.
“We’re excited to introduce technology streamlining a settlement process that has always burdened the dairy industry,” said Mitch Norby, President of the Technology Division at Dairy.com. “Through the use of pre-defined parameters and tolerances, nearly all loads can be automatically settled, which is a vast improvement over an otherwise time- and labor-intensive process.”
Additionally, beginning October 1, a new price schedule for the Trading Exchange will be introduced. Dairy.com Spot Cream Market prices will fall from $199 to $99 per side, per transaction, and all other cream loads will be traded at $20 per side, per transaction. Also, in order to encourage adoption of the new Settlement feature, Dairy.com will provide a discount of $5 per side, per transaction when the feature is used on 90% or more of a customer’s cream transactions per month.
“By lowering costs for all trading partners, we anticipate more cream volume across the Dairy.com Trading Exchange,” said Norby. “The new price schedule is one of the most noteworthy changes made during the 13-year history of the Trading Exchange. We expect that the lower costs will make it easier for new participants to enter the market and will enhance liquidity, which benefits all trading partners.”
Additional details related to the new Physical Settlement and Pricing feature and Trading Exchange price schedule can be found at Dairy.com and at the Company’s fourth annual Cream Symposium, which is open to the industry and free to attend.