Skimmed milk powder markets remain firmly supported as limited availability across major exporting regions meets strong import demand.
Prices continue to rise globally. The EU Vesper Price Index for SMP stands at €2,600 per tonne, while US and Oceania markets are trading at higher levels.
Supply constraints are most visible in the United States. Production of nonfat dry milk and SMP has declined as processors focus more heavily on higher-value protein products, cheese and fresh milk. At the same time, stocks remain relatively low.
In Oceania, the milk season is approaching its final months, reducing the volume available for export. Demand from buyers in the Middle East and Asia has strengthened as geopolitical risks encourage importers to secure supply earlier than usual.
European SMP remains competitively priced compared with other origins, supporting export demand. Shipments from the EU have increased as buyers turn to European product when US and New Zealand offers are limited.
Processing capacity is also running close to full utilisation. Even with relatively cheap skimmed milk concentrate available, drying capacity limits how much additional powder can be produced.
While some of the recent buying reflects precautionary purchasing rather than immediate consumption, the current balance of lower supply and steady demand is keeping SMP markets well supported.
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