MD_DA106                                                         
DA                                                               
MD DA106 Skim Milk Powder - Europe                               

MADISON, WI.  February 04, 2016 (REPORT 5)                       

WESTERN EUROPE                                                   
INFORMATION GATHERED  01/25/2016 - 02/04/2016                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):   

Skim milk powder markets have a weak undertone supported by the 
intervention program. Short term, demand is low. There is greater buying 
interest for second quarter deliveries and later, from the European food 
industry. Current prices are unchanged. Eurostat reports that January-
November 2015 EU production of skim milk powder is 8.1% above the same 
period in the prior year. November 2015 production is 14.1% above 
November 2014. Among the top 4 SMP producing EU countries by volume with 
production increases January-November, Ireland leads with 96.7%. 
Following Ireland was Germany +11.4%; Netherlands +8.7%; and Belgium 
+8.2%. EU SMP exports for January-November 2015 are +6.0% higher than the 
same period of 2014. Global export competition is reported to be strong. 
The current intervention period began January 1, 2016 and will end 
September 30, 2016 unless extended. There is an intervention purchase 
ceiling of 109,000 metric tons. SMP may be sold into intervention at the 
intervention price of 169,8 ?/100kg until a maximum ceiling of 109,000 
metric tons is reached, after which a tendering procedure will open. 
Total intervention purchases through January 31, 2016 were 22,536 metric 
tons.
                                       
1.25% BUTTERFAT:                         1,700 - 1,800     

0930c 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