European dairy markets continue to rise in the face of tight milk supplies from EU dairy farms and soaring export demand. This week, European spot prices for skimmed milk powder (SMP) rose to €2,430/t – their highest level in five years.
European dairy markets continue to rise in the face of tight milk supplies from EU dairy farms and soaring export demand.
This week, European spot prices for skimmed milk powder (SMP) rose to €2,430/t – their highest level in five years.
SMP exports from Europe are soaring in 2019. Up to the end of August, SMP exports by the EU to third countries are almost 30% ahead of last year at just under 690,000t. China is now the largest buyer of EU-made SMP with exports up more than 60% so far this year.
At the same time, the price of whole milk powder (WMP) increased close to €3,050/t thanks to lower supplies across Europe. WMP production in Europe is down almost 2% in the first eight months of 2019 as processors divert more milk into butter and SMP.
Meanwhile, butter prices are holding steady at just over €3,500/t, which is a very healthy level in historic terms. Butter exports from the EU to third countries is also performing very strongly this year. Up to the end of August, the EU has shipped 108,000t of butter to world markets, which is 23% ahead of last year.
Butter exports to the US (almost all of which is Irish butter) are up 36% year on year to more than 25,000t, while butter shipments to Japan are up 50% to 6,500t. On cheese markets, demand is said to be quite healthy and cheddar prices have improved to €3,000/t over recent weeks.
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