EU SMP price creeping towards intervention

Published 18 May 15

The EU skimmed milk powder (SMP) price in April was €330/tonne above the €1,698/tonne intervention level and a strong spring flush of milk could push prices down further still. The most recent price for the week ending 9 May shows another small fall of 2% from the previous week, down to €1,930/tonne. This is the latest in a series of small drops that are steadily chipping away at the price.

If intervention did come into play, traders may face a choice between selling to the EU Commission at a low price or trying to hold out for a possible price recovery. This could be a difficult decision given the current level of uncertainty in the dairy markets.

SMP intervention 18May15