MD_DA126                                                         
DA                                                               
MD DA126 Skim Milk Powder - Oceania                              

MADISON, WI.  May 11, 2017 (REPORT 19)                           

OCEANIA                                                          
INFORMATION GATHERED  05/01/2017 - 05/12/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):    

      Oceania skim milk powder prices slightly weakened at each 
end of the price range, but remain above prices in Western 
Europe. Most Oceania SMP production is to fill existing 
contracts. Contracting for the upcoming new milk production 
season is slow, as buyers are not concerned about getting supply 
commitments, at least at prices some manufacturers would like to 
receive, considering the abundance of SMP availability. 
Exporting SMP continues to be challenging.  
      New Zealand exports of SMP year to date January-March 2017 
declined 18.9% from the same period one year earlier, according 
to Eucolait. Export volumes and primary destinations are shown 
in the following table:
 
 			New Zealand SMP Exports
			Main Three Destinations 
	           January-March 2017 
 
Destination  	Quantity (MT)  % of Total  
China 		26,783 		25.7% 
Thailand 		10,880  		10.5% 
Philippines	10,564  		10.2%
 
      New Zealand's biggest customer for SMP, China, has 
increased import volumes. SMP imports by China January-March 
this year are up 2.7% from the same period last year according 
to Eucolait.

      China SMP Imports
          	Main Three Origins
               January-March 2017 
 
Origin  		Quantity (MT)  % of Total  
New Zealand	45,944  		61.8% 
Australia		 6,444  		 8.7% 
United States	 5,493  		 7.4%

      The Dairy Market News April 2017 Oceania SMP monthly 
average price per metric ton was $1,969, compared with $1,738 
one year earlier. 

      At GDT Event 187 on May 2, the SMP all contracts price 
decreased 0.9% and the June contract price decreased 2.8%. 
                                                                

1.25% BUTTERFAT:                         1,975 - 2,025               



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