Skim milk powder prices continue to rise

The price of skim milk powder has been increasing steadily, largely due to strong global demand for its protein content, especially in the United States. Agro-economist Baptiste Buczinski from Idele notes that the demand is widespread, making it difficult to meet supply needs.

U.S. export challenges and health issues

The situation is reminiscent of last spring, when the United States, a major exporter of dairy products, faced limited availability. The U.S. is using dairy protein to produce high-protein products, which remain in high demand. This is further complicated by a health issue at California Dairies, which has forced the company to shut down some of its drying units.

Record prices and global market dynamics

In May, skim milk powder prices hit record highs of around $5,000 per ton, according to Baptiste Buczinski. Globally, demand remains strong, and Europe has benefited from a price differential, making its skim milk powder more competitive on the international market.

Changing price dynamics and butter market

However, this price advantage is gradually fading as global prices converge. For whole milk powder, demand is also present, which is reflected in rising European prices. In contrast, the butter market is experiencing different dynamics, with prices stagnating or even declining due to high supply levels.

Butter trading and farmer behavior

For three weeks, the Spot butter price is no longer quoted at Atla due to a lack of transactions. Despite this, the level of milk collection has not dropped significantly. Farmers are likely waiting to assess their stock levels before winter, and there is no immediate sign of an increase in cows being culled.