MD_DA126                                                         
DA                                                               
MD DA126 Skim Milk Powder - Oceania                              

MADISON, WI.  February 02, 2017 (REPORT 5)                       

OCEANIA                                                          
INFORMATION GATHERED  01/23/2017 - 02/03/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):                                          
                                                                 

Skim milk powder prices in Oceania are steady. Few buyers or sellers 
were particularly motivated to give ground on pricing to make sales. 
Moreover, January is a Summer holiday month in Australia, taking many 
potential participants out of active market activity. In New Zealand, 
milk is shifting slightly from whole milk powder back to SMP and 
butter production due to perceptions of profitability. New Zealand 
SMP exports January-November 2016 were up 14.4% according to 
Eucolait. The main export destinations and percent of total butter 
exports were: were China 22.4%; Malaysia, 9.6%; and Philippines, 
9.4%. SMP is less significant an export factor in Australia, where 
domestic consumption of domestically manufactured SMP is more 
significant than in New Zealand. New Zealand, and to a lesser extent 
Australia, are among the main SMP exporting countries according to 
Global Trade Atlas. Imports of SMP by the main importing countries 
during January-November 2016 compared with the same months of 2015, 
show the following percentage changes: China, -6%; Russia, +25%; 
Algeria, -25%; Mexico, +17%; Japan, -38%; and United States, -74%.


1.25% BUTTERFAT:                         2,350 - 2,450           


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