MD_DA106 DA MD DA106 Skim Milk Powder - Europe MADISON, WI. March 02, 2017 (REPORT 9) WESTERN EUROPE INFORMATION GATHERED 02/20/2017 - 03/03/2017 U.S. DOLLARS PER METRIC TON, FOB PORT SKIM MILK POWDER (SMP): Skim milk powder prices in Western Europe are lower this week at each end of the price range. Weaker prices occurred in a number of major SMP producing countries including Germany, France and Netherlands. Demand has lessened, both within the EU and in export markets. Buyers in domestic and export markets seem confident in strong SMP supplies going forward, leaving buyers more languid in closing deals unless sellers move toward buyers' price notions. Sellers are well aware of these dynamics and are more price flexible. Total 2016 SMP production in European Union member counties was up 4.5% from 2015 according to Eucolait. Note however, that EU 2016 SMP production each month beginning July has been lower than the corresponding 2015 month. Among EU SMP producing nations, 2016 annual production was up from 2015, as well as December 2016 versus 2015, in Germany (+8.9%, 3.8%), Netherlands (+3.2%, +11.1%), Belgium (+11.6%, +0.4%), Denmark (+21.6%, +50.0%), and Sweden (+15.3%, +14.4%). Annual 2016 and December 2016 SMP production was down from the previous year in Spain (-40.5%, -49.7%), France (-2.7%, -17.3%), Austria (-53.9%, -61.2%), and Portugal (-0.1%, -2.6%). European Union SMP exports for 2016, 574,184 MT, were 17.0% lower than 2015 exports according to Eucolait. For the year, the main destinations were Algeria, 15.8%; China, 8.9%; and Indonesia, 8.2%. 1.25% BUTTERFAT: 1,950 - 2,050 0930c eric.graf@ams.usda.gov 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