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

$10.25/kgMS milk price now in play

A significant rise in Global Dairy Trade (GDT) auction last week has prompted one bank to lift its forecast milk price for the season to above Fonterra's mid-point.

Featured

Dr Mike Joy says sorry, escapes censure

Academic Dr Mike Joy and his employer, Victoria University of Wellington have apologised for his comments suggesting that dairy industry CEOs should be hanged for contributing towards nitrate poisoning of waterways.

People-first philosophy pays off

The team meeting at the Culverden Hotel was relaxed and open, despite being in the middle of calving when stress levels are at peak levels, especially in bitterly cold and wet conditions like today.

National

Machinery & Products

JDLink Boost for NZ farms

Connectivity is widely recognised as one of the biggest challenges facing farmers, but it is now being overcome through the…

New generation Defender HD11

The all-new 2026 Can-Am Defender HD11 looks likely to raise the bar in the highly competitive side-by-side category.

» Latest Print Issues Online

Milking It

Buttery prize

OPINION: Westland Milk may have won the contract to supply butter to Costco NZ but Open Country Dairy is having…

Gene Bill rumours

OPINION: The Gene Technology Bill has divided the farming community with strong arguments on both the pros and cons of…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter