News
-
News Articles
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
-
September 2018
- IFCN top 20 milk processors list released
- SMP sales slow in September
- AHDB milk production forecast update
- SMP prices prevent global commodities reaching peak
- Slowdown in world milk supply growth (1)
- The cost of supporting yields through the summer
- GB milk production back in line with last year
- EU-Oceania price gap for butter hits 10-year high
- Do milky drinks hold the key to increased milk consumption?
- Cheddar deficit growing on back of rising imports
- Rise in butter imports pushes up fat deficit
- Demand reignited in SMP intervention stocks sales
- Meat and dairy products to take centre stage in Hong Kong
- Maximising the environment for the high yielding cow meetings
- Top tips for calf rearing launched
- Fertility for block calvers
- New tool developed to help dairy farmers proactively manage mastitis
- New programme aims to cut costs and increase profits
- Upcoming EuroDairy webinars this October
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- Archive
- Technical Articles
- News Archive
SMP prices prevent global commodities reaching peak
Published 25 September 18
Global commodity markets have been following a rough three-year cycle for over a decade, but the latest peak, expected in 2017, failed to materialise. The chart below shows an estimate of the milk equivalent (AMPE) for selling butter and skimmed milk powder (SMP) on the world stage. While the industry encountered an extended trough through 2015 and 2016, the recovery since that date has been slower than normal, and muted.
If we break the calculation for AMPE into its separate components, we can see that for the peaks in 2007 and 2014, SMP was the main driving force behind the increases. In 2011, it was both butter and SMP that lifted AMPE. However, in 2017, the exceptional increase in butter prices was not enough to offset falling SMP values, leading to a slow and gradual overall increase in AMPE.
Global SMP prices continue to be held back by the large quantities of powder in stocks, including EU intervention stores. While the EU is making inroads into this stock, there is still around 250k tonnes remaining.