Milk powder prices on global dairy markets are set to finish 2019 on a real high.

A combination of lower milk powder production in Europe coupled with strong import demand from China and other Asian markets has seen milk powder prices rocket to yearly highs over recent months, especially skimmed milk powder (SMP).

At Tuesday’s GDT auction in New Zealand, the average price of SMP rose another 2% to close to $3,100/t (€2,765/t). This is a six-year high for New Zealand SMP prices. At the same time, the price of whole milk powder (WMP) at this week’s GDT rose marginally above $3,330/t (€3,000/t), which is a three-year high.

The surge in milk powder prices in New Zealand is mirrored here in Europe. This week, spot prices for SMP reported to the Dutch dairy board increased to €2,600/t. Again, this is the highest price point for European SMP in almost six years. European WMP prices also lifted this week to hit €3,130/t – its highest level in three years.

On the fats side, butter markets in Europe are steady this week, with spot prices holding at just under €3,600/t. On cheese markets, the price of cheddar and mozzarella are unchanged this week at €3,000/t and €3,150/t respectively.

UK milk production for October was under 1.2bn litres, down almost 1% on the same month last year. Polish milk production in October was up 1% to 950m litres, while Irish milk production is down 4% in October below 620m litres.