Global demand for Dairy products (SMP)¬† has generally deteriorated throughout¬†year 2015 and in the first months of 2016. We observe further deep in Butter and SMP price as the result of oversupply (increase production in NZ and EU ) and weak imports ¬†from China, Russia and Northern Africa region. The situation is uncertain ¬†and may¬† change significantly before the end of year 2016, according to the market experts of EMC Abbottpm.
On one hand, existing pressure on Butter and SMP ¬†manufacturers ¬†will remain and¬†¬†price may further fall ¬†throughout summer months of 2016. It is¬†in line with¬†¬†seasonal butter prices decline, however, ¬†current price ( Q1 2016) ¬†is low not only compared to the high levels reached back in 2014 but also compared to the average of the last 5 years. The gap between highest and lowest price in the EU and worldwide had increased and dairy producers reached limits set by the cost of producing the milk.
On the other had 1 March 2016, was the date then new cycle of EU Dairy Intervention and anti-crisis measures had started (as set by the¬† EU Regulation ¬†No 1308/2013) Later ¬†provides EU milk operators and farmers with some degree of ¬†market certainty in form of safety net for¬† agricultural¬† markets¬† as¬† part¬† of single¬† common market regulation (sCMO). EU-wide Public market buying-in is a system whereby product is purchased¬† by the public authority ¬†in each member state when prices are low and sold back into the market when the price recovers, alternative to sale can be ¬†distribution to non-profit organizations (UN, other aid agencies ). Such measures cater for a situation where EU prices deteriorate ¬†and ‚Äúreference thresholds‚ÄĚ ¬†for intervention set at:
- Butter – ‚ā¨ 2,217per MT
- SMP – ‚ā¨ 1,698 per MT
Intervention¬† buying for ¬†the dairy sector in EU ¬†were in place in 2009/10, (81,891 tonnes¬† of¬† butter¬† and ¬†273,682¬† tonnes¬† of¬† SMP¬† were¬† purchased)¬† and ¬†in 2015/16 (60,000 tonnes of Butter & 109,000 tonnes of SMP). Quantities offered into intervention through 2016/17 are likely to remain significant even despite real chance that ¬†Russia market can be re-opened for EU dairy as soon as in Q4 2016 . It should be noted that later factor is rather political, and it makes forecast of export and price effect ¬†less predictable.
Note – Russian government ban on the import of agricultural products (SMP, Cheese, Butter, other Dairy) originated in the EU in place till 6 August 2016.¬†
Note – Russian government ban on import of Ukrainian Dairy products (until further notice) in !summer months only! ¬†creates surpluses capacity on the local Ukrainian market of butter and SMP.
We offer buyers from other regions¬†¬†take advantage of the current short lasted situation with abnormally low prices and buy ¬†SMP from Ukrainian manufacturers at significant discount ¬†(current Ukraine price is under EU reference¬† thresholds)¬† this opportunity will ¬†not last long.
Abbottpm represents ¬†Ukrainian¬†¬†Butter and Skimmed Milk Powder (SMP)¬†¬†manufacturer at global markets. Therefore we offer
- direct export contract
- no commission¬†
- same day CIF quote –(if submitted before¬†11.30¬†am ¬†– container shipment, volume up to 100 ton/month )
- competitive price on large volumes ( 100+ tonnes) ¬†
- fast test¬†consignment¬†( 5-28 MT ¬†)¬†
- LC payment¬†
- Free and fast sample shipment¬†upon confirmed LC ¬†
GET in touch today if you are looking to buy Skimmed Milk Powder (SMP)¬† wholesale.