MD_DA106                                                         
DA                                                               
MD DA106 Skim Milk Powder - Europe                               

MADISON, WI.  September 28, 2017 (REPORT 39)                     

WESTERN EUROPE                                                   
INFORMATION GATHERED  09/18/2017 - 09/29/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):    

       Skim milk powder prices in Western Europe weakened. The SMP market in Europe 
is mostly quiet. Generally purchasers and prospective purchasers have stocked 
what they need for near term demand. Most contracting for coming months has been 
finalized for a while. Domestically, there is little activity in the spot market. 
       With the current intervention program ending September 30, an upturn in SMP 
being tendered has occurred. Germany, France and Netherlands tendered quantities 
of 1,560 MT, 873 MT and 1,548 MT respectfully. Smaller quantities of SMP were 
sold into intervention by Lithuania, Poland, UK, Belgium and Latvia.
       According to Eucolait, January-July skim milk powder production is 9.3 
percent below 2016 SMP production for the same time frame. July 2017 SMP 
production was 3.0 percent below 2016 July production. The two largest SMP 
production countries, Germany and France, both realized double-digit reductions 
in 2017 January-July SMP production compared to 2016 January-June production, 
-10.0 percent and -12.9 percent respectively.
       	If you are reading the text version of this report, you will not be 
able to see graphs which can be viewed at 
https://www.ams.usda.gov/mnreports/dywweeklyreport.pdf when the Dairy Market News 
Weekly report is released Friday of the report week.



 

Data from Eucolait. Chart by USDA Dairy Market News

       January-July EU SMP exports, 493,094 MT, increased 39.4 percent from the 
same period one year earlier, according to Eucolait. The range of monthly 
percentage changes in cumulative export volumes varies from -5.5 percent in 
January, to +39.4 percent in July. Export volumes and primary destinations are 
shown in the following table:
 
  		               EU SMP Exports
                 	Main Three Destinations 
                 	January-July 2017 
 
Destination       	Quantity(MT)   Percent of Total  
Algeria               78,447                15.9
China                 50,671                10.3 
Indonesia             41,027                 8.3
January-July                                      
                                                                 
1.25% BUTTERFAT:                         1,800 - 1,950           



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