MD_DA106                                                         
DA                                                               
MD DA106 Skim Milk Powder - Europe                               

MADISON, WI.  February 05, 2015 (REPORT 5)                       

WESTERN EUROPE                                                   
INFORMATION GATHERED  01/26/2015 - 02/06/2015                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):  The skim milk powder prices advanced, supported 
by restrictions in milk supplies as producers decrease milk production to 
avoid levee payments and increased export interests, sparked by the lower 
Euro exchange rates.  Most supplies for Q1 are committed.  Some buyers 
are showing increased interest in securing long term deals beyond Q2, but 
manufacturers are hesitant to enter into those agreements, because 
there's possibly more upside to the market than previously perceived.  
The market has a cautiously firm undertone.  PSA stock levels through 
January 18 amounted to 17,970 MT with Germany accounting for over 50% of 
the volume in storage.  Exports of SMP for January to November 2014, as 
reported by GTIS, showed an increase of 58%, compared to the same period 
last year.  November exports increased significantly compared to the 
previous month.  Algeria received nearly 25% of Europe's November 
exports.  China purchases remain below year ago levels.   According to 
Eurostat, European SMP production increased in the January-November 2014 
period.  Selected countries showing SMP production increases were: 
France, +26.1%; Germany, +13.2%; Belgium, +25.6% and Ireland, +58.9%. 

1.25% BUTTERFAT:                         2,100 - 2,400           

0930c rick.whipp@ams.usda.gov 608.278.4151
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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