Last week’s EU average price of €2,390/t for skimmed milk powder (SMP)is another increase in a market that has climbed steadily throughout this year to the point that it is now at a level last seen in 2014. While prices are still some way off the €3,300/t achieved back in 2013, the steady progression throughout this year reflects a solid market.

With the intervention stocks of powder now cleared, buyers are chasing fresh production and as it is with many agricultural commodities, China is a big driver of the global market. Up to the end of September this year, it has taken 102,286t of SMP which is an increase of 52% on the same period in 2018. The next biggest markets are Algeria on 79,296t followed by Indonesia on 64,595t and Philippines on 60,485t.