Wednesday, 20 November 2019 09:23

Skim milk powder back in the game

Written by  Staff Reporters
Skim milk powder prices have risen to the highest level in five years. Skim milk powder prices have risen to the highest level in five years.

Skim milk powder (SMP) is continuing its golden run on the Global Dairy Trade (GDT) auction.

In the GDT auction overnight, SMP price rose 3.3% to $US3017/metric tonne, the highest level in five years.

Over the past few years SMP prices struggled due to the high stocks produced in the EU: huge stockpiles of SMP held by EU members have been holding prices down.

In August 2015, SMP prices slumped to US$1419/MT. Around this time last year, SMP was fetching only US$1965/MT.

The EU stocks are now dwindling and due to lower prices manufacturers have directed milk away from SMP into other product mixes, resulting in a shortage.

This has helped SMP prices reach the highest level seen in five years.

The GDT price index for last night’s auction rose 1.7% compared to the previous auction.

Whole milk powder price rose 2.2% to US$3321/MT.

Key results

AMF index down 1.5%, average price US$5,108/MT

Butter index down 1.3%, average price US$4,061/MT

BMP not offered

Ched index up 2.5%, average price US$3,701/MT

LAC index up 1.3%, average price US$775/MT

RenCas index up 5.6%, average price US$7,668/MT

SMP index up 3.3%, average price US$3,017/MT

SWP index not available, average price not available

WMP index up 2.2%, average price US$3,321/MT 

More like this

$7-plus still on the cards

Despite four consecutive drops in Global Dairy Trade (GDT) prices, analysts are sticking with a payout of around $7.20/kgMS for this season.

Is China back?

There was a silver lining to the fourth straight drop in global dairy prices last week: demand in China is recovering.

Dairy fundamentals looking good

Independent economist Cameron Bagrie says dairy fundamentals are looking pretty good, despite the GDT dropping in the past three auctions.



Change of tune needed

OPINION: It has been some weeks since we have had to face the ideological rhetoric, in any quantity, that has pervaded our lives for much of the last three years – and I haven’t missed it one bit!

Farmers adapt well to new sales model

Fonterra’s rural service subsidiary, Farm Source says farmer shareholders are adapting well to its new trading model under COVID-19 restrictions. 

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Cruelty to cows

The New Zealand Anti-Vivisection Society, a lobby defending animals used in science has turned its attention to Lincoln University.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter