MD_DA106                                                         
DA                                                               
MD DA106 Skim Milk Powder - Europe                               

MADISON, WI.  May 25, 2017 (REPORT 21)                           

WESTERN EUROPE                                                   
INFORMATION GATHERED  05/15/2017 - 05/26/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):                                          

	Skim milk powder (SMP) prices in Europe are moving higher as internal 
European demand is strengthening. Production of SMP has slackened due to 
milk deliveries not meeting expectations, and active cheese production is 
pulling hard on available milk intakes. Industry contacts say SMP production 
is in good balance with current demand. Inventories of uncommitted SMP are 
tight. Market participants are finding prices for feed grade SMP to be very 
close to prices for food grade SMP. Older product availability is limited 
and most SMP with age is locked up in intervention. 	Total SMP stocks in 
intervention as of March 2017 were 350,159 MT. 
       According to Eurostat, EU SMP production January - March, 2017, 
declined 9.0%. During that time frame, production decreased in four of the 
top SMP producing member states. Germany decreased 11.2%. France decreased 
15.0%. Belgium decreased 21.2%. Poland decreased 1.2%.
       Eucolait reports January-March EU exports of SMP increased 6.7% from 
the same period one year earlier. Export volumes and primary destinations 
are shown in the following table:

	European Union Skim Milk Powder Exports
		Main Three Destinations
		  January-March 2017

Destination  	Quantity (MT)  % of Total
Algeria		  26,466  		13.9%
China			  21,059  		11.1%
Indonesia 		  17,213  		 9.0%


1.25% BUTTERFAT:                         2,000 - 2,175           


0930c mike.bandli@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