Dec. 4, 2019 (SILVER SPRING, MD) – Buyers and sellers of organic cream found price transparency for the first time, thanks to quarterly auctions from the nation’s only organic and non-GMO data and trading company, Mercaris.
Mercaris held four auctions in 2019 through its online platform, overseeing the trade of nearly 100,000 pounds of organic cream. The two most recent organic cream auctions closed at $4.45/lb. and $4.65/lb., about 86% higher than conventional Class II butterfat prices. “Price transparency can be a major frustration and a barrier to entry in the organic space,” said Lizzie Ekeberg, Director of Market Operations at Mercaris. “Knowing that there are recurring auctions for organic cream encourages participation from buyers and sellers and ultimately brings more stability to those markets.”
Auctions are held in real-time, and all offers and bids are visible. Each auction in 2019 saw an increase in participants, which included dairy processors, brokers, food companies and more.
“The organic dairy supply chain has its share of challenges, including competition from ‘alternative proteins’ and industry consolidation, amongst others,” CEO Kellee James said. “One takeaway from our online auctions has been that there is still high demand from buyers for butterfat, even as organic fluid milk sales remain somewhat flat. That’s important information for everyone from dairy producers to CPG companies.”
Mercaris will continue to host organic cream auctions in 2020 and plans to expand its existing product suite. The first auction of 2020 is scheduled for Feb. 11, 2019.
Since 2013, Mercaris has been helping its customers capitalize on the growing demand for organic and non-GMO foods by providing market access and services tailored to the needs of the identity-preserved agriculture industry. Mercaris focuses its data and services on identity-preserved commodities, including organic and non-GMO corn, soybean, meal and organic wheat, and other small grains markets across all regions of the United States and Canada, and recently launched an organic dairy initiative. Mercaris also maintains an online Trading Platform, a pioneering tool that enables buyers and sellers to find new markets and more profitably trade organic and non-GMO commodities.
Media Contact: Matt Merritt