MD_DA106

     Skim Milk Powder - Europe

     Report 47 - Released on November 22, 2022

     European skim milk powder (SMP) prices moved lower. End users have a good share of their
     near-term needs covered, and the spot market has gone quiet once again. As exchange rates
     flip, buyers are less eager to book spot deals. A large SMP tender is expected in the next
     few weeks. If captured, the tender could tighten up SMP stocks. But exchange rates could
     also make European SMP less competitive compared to some other international supplies.
     European SMP inventories are larger than expected and vary by manufacturer. Some contacts
     think prices for SMP and skimmed concentrate may further weaken before the end of the year.
     There is a perception that buyers do not need to be in a rush to make purchases. Contract
     negotiations are ongoing for the coming year. SMP production has picked up as milk volumes
     have stabilized and start to grow ahead of the end of the year.


     Prices for: Europe, All First Sales, Free on Board - Port, Conventional, and Edible Skim
     Milk Powder
     Price Range - 1.25% Butterfat; $/MT:                   2,950 - 3,475


     Information for the period November 14 - 25, 2022, issued biweekly

     Secondary Sourced Information:

     EU SMP Production
     According to CLAL data made available to USDA, EU September SMP production is estimated at
     109,325 MT, an increase of 10.8 percent from September 2021. EU SMP production January -
     September 2022 is estimated at 1,163,448 MT, an increase of 2.5 percent from January -
     September 2021. Among some of the leading European SMP producing countries, the January -
     September 2022 quantity and percentage change compared with January - September 2021 are
     France, 285,600 MT, -7.9 percent; Germany, 263,308 MT, -5.8 percent; Ireland, 146,930 MT,
     +21.8 percent, and Belgium, 147,090 MT, +21.2 percent.

     YTD EU SMP Exports
     SMP exports from the EU27 January - September 2022, 528,000 MT, decreased 15.1 percent from
     January - September 2021 according to CLAL data made available to USDA. Main destinations
     January - September 2022, quantity, and percent change from January - September 2021 are
     Algeria, 78,412 MT, -0.01 percent; China, 64,054 MT, -40.85 percent; and Indonesia, 37,710
     MT, -27.21 percent.


     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
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