April 9, 2018

 

EU skim milk powder production, exports up significantly

 


The EU's skim milk powder (SMP) production in 2017 remained well above the last five-year average (+12 %) and was only 2.7 % below the record level of 2016.

 

According to the European Commission's short-term outlook report for EU agricultural markets in 2018 and 2019, the EU took back the primacy from the US on the international SMP trade as EU exports increased 35% to 779,000 tonnes.

 

The main destinations of EU SMP exports last year were Algeria, to which shipments increased 46%, China (+66 %) and Mexico (+377 %). While Mexico's SMP imports from the EU increased, those from the US decreased.

 

EU's SMP production is projected to increase almost 3% to 1.56 million tonnes this year due to ample milk supply in the EU and because global and EU demand for SMP is expected to further grow.

 

In 2019, a slowdown in EU milk production growth may lead to a small decline in SMP production, given that cheese offers best returns and the large SMP availabilities in stocks, the outlook report said.

 


Whole milk powder and drinking milk
 

The EU production of whole milk powder (WMP) in 2017 increased by 3% compared with 2016, driven by rising exports and better returns than when processing SMP and butter.

 

A further 2% production growth is projected for 2018 as the demand from the food industry and world markets remain strong, though at a lower rate, the EU report said.

 

Exports of EU WMP grew 3% last year, and top importers were Algeria, Nigeria and China.

 

In 2017, though, exports of fresh drinking milk declined slightly in product weight (-3 %), after several years of significant growth. However, in milk equivalent, the strong increase in exports of cream (+ 20%) and yogurt (+9 %) more than offset the drop in drinking milk shipments (-9%).

 

In 2018, exports of drinking milk could grow by 5% and stabilise in 2019, but production is projected to steadily decline due to lower EU demand, the report said.

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