NZX says it could take at least a couple of years to develop a deep and liquid futures market for dairy products, but more and more industry players are coming on board.
Last week, NZX Dairy Futures, which allows buyers and sellers to lock in milk prices for delivery at a later date, passed the 10,000 lots mark.
Launched in October last year, it took a year to reach 5000 trades, but the next 5000 took just a few weeks, helped by a surge in the number of lots traded in anhydrous milk fat.
Head of derivatives Kathryn Jaggard says average daily trade is nearing 150 lots, and it is on the way to becoming a truly liquid and global derivatives market.
She says NZX plans to launch its first suite of dairy option contracts at the end of the month.