DA106                                                         
DA                                                               
MD DA106 Skim Milk Powder - Europe                               

MADISON, WI.  December 23, 2015 (REPORT 51)                      

WESTERN EUROPE                                                   
INFORMATION GATHERED  12/14/2015 - 12/25/2015                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):  

The market for skim milk powder in Europe is attuned to ongoing sales 
into the intervention program, occurring this year for the first time 
since 2009. Pricing is unchanged this week, sitting close to the 
intervention price of 1,698 Euros, which this week equals $1,855. SMP 
priced at the lower end of the price range tends to be older production, 
not eligible for intervention sales. Sales at the upper price range tends 
to be fresh production, typically less than 3 months old. Not all SMP 
inventories can be directly sold into intervention because there are 
specific packaging, age and other product requirements. Some current 
manufacturing is being made and bagged specifically for sales into 
intervention, and will not reach the spot market. Last week's sales 
volume into intervention, was a level that was disappointingly low to 
some in the industry. Most potential European buyers of SMP are well 
covered and not particularly interested in purchases now, leaving the 
volumes of transactions low. January-October 2015 skim milk powder 
exports for the EU-28, as reported by GTIS, increased 8.4% compared 
to the same period last year.  However, October export volume was the 
lowest month of this year.                              
                                                                 
1.25% BUTTERFAT:                         1,725 - 1,900           



0100c Eric.Graf@ams.usda.gov 608.557.7005
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home