CME Group Acquires European Dairy Business from EEX
News related to:CME Group · 2 min read
CME Group is set to expand its global footprint in the dairy industry with the acquisition of the European dairy business from the European Energy Exchange (EEX). This move marks a significant step for CME Group as it aims to provide a comprehensive risk management platform for dairy producers and consumers.
Under the terms of the agreement, EEX plans to phase out its dairy business and support the transition of its European dairy indices to CME Group by the end of 2027. The transaction includes the European butter and skimmed milk powder indices, which will be incorporated into CME Group’s existing dairy futures and options offerings.
Derek Sammann, Senior Managing Director & Global Head of Commodities Markets at CME Group, stated, “The European dairy market is one of the largest in the world, and the addition of European dairy futures and options will allow CME Group to build on its record activity in the U.S. dairy franchise and offer clients access to a truly global market in one venue.”
Samanmann emphasized the strategic importance of the European market, noting that the global population's growing demand for dairy as a protein source underscores the need for robust risk management tools. He added, “With U.S. dairy volumes increasing by 73% over the past five years, expanding into Europe is the natural next step in helping producers and consumers access capital efficiencies and manage regional price risk.”
EEX’s Chief Executive Officer, Tobias Paulun, expressed confidence in the transition, stating, “We are proud of the leading European market for dairy derivatives that we built over the years together with our customers. With our renewed focus on core markets and related growth areas, we are delighted to have CME Group as our successor, bringing additional growth opportunities for the dairy community. We are committed to supporting CME Group and market participants with a smooth transition.”
Paulun highlighted EEX’s commitment to supporting the energy transition and its focus on core energy markets, while noting that dairy futures trading at EEX will remain available for the respective listed maturities. The pan-European butter and World Energy Cheese Index (WECI) indices will continue to operate without immediate changes.
According to the U.S. Department of Agriculture Foreign Service, the European Union accounts for approximately 20% of cow’s milk production and more than 30% of nonfat dry milk exports globally. Despite this significant market share, much of the European dairy market remains unhedged, leaving producers and consumers exposed to price volatility.
CME Group’s dairy market has seen strong activity, with open interest climbing to a record 434,071 contracts on September 1, 2026. This growth underscores the demand for robust risk management tools in the dairy industry.