MD_DA106

     Skim Milk Powder - Europe

     Report 3 - Released on January 16, 2020

     Western European skim milk powder prices are higher. The highest prices are in Belgium,
     followed by France, Germany and Netherlands. Prices are pleasing to manufacturers. Dairy
     Market News monthly average prices during 2019 ranged from $2,125 for January, to $2,851
     for December.

     Late 2019 holiday inquiries for new SMP orders mostly came from export customers. Most
     internal EU buyers were on holiday. That has changed. Most internal EU buyers are back, and
     they are interested in buying. The combined interest from export customers and internal EU
     customers is keeping the market firm.

     Dairy observers believe final 2019 data, when available, will show that SMP stocks have
     shrunk during 2019 due to high domestic and export demand. Additionally, observers believe
     final 2019 results will record high SMP exports from the EU.

     Looking ahead, SMP manufacturers believe there may be tighter SMP availability moving
     through the year. Uncertainty focuses on how milk production develops, as well as
     competition for milk from cheese manufacturers. This is expected to possibly reduce SMP
     exports, because internal EU demand is likely to be the priority.
     Prices for: Europe, All First Sales, Free on Board - Port, Conventional, and Edible Skim
     Milk Powder
     Price Range - 1.25% Butterfat; $/MT:                   2,850 - 2,975


     Information for the period January 6 - 17, 2020, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@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
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov