Deep Dive: Tracking Trends in Skimmed Milk Powder (SMP)

Production: In the US, NFDM production continues to ramp up seasonally, rising by 3.5% from February to March, besting the MoM five-year average. However, output still fell short of prior year levels in March. In the EU, production figures were neutral to weak compared to 2024, with stocks still on the lower end compared to the past 5 years. Oceania is assumed to have somewhat lower SMP production from NZ compared to last year.

Demand: US March exports were surprisingly strong as the US regained market share in SE Asia quite fast, totaling 64.8k MT for March. EU exports were neutral in March at 71.3k MT, where weak demand in North Africa was eased by stronger demand in SE Asia. NZ exports were strong again in March at 41.8k MT.