Competitive pricing is key to expanding exports

Published 11 March 15

The EU’s exports of skim milk powder (SMP) to Algeria almost tripled in 2014 on the back of lower prices. Proximity to the market and reputation have allowed the EU to dominate this market, typically accounting for 85-90% of total imports. However, the EU will need to remain preice competitive to retain this position, especially in the face of declining US SMP prices.

In 2013, prices of EU-sourced SMP were higher on average than those from either the USA or Oceania. This resulted in a drop in Algerian imports of SMP from the EU in favour of product from the US and New Zealand, reducing the EU share of the total to under 50%. In 2014 EU SMP prices fell below those of its competitors, allowing it to regain its position as the largest supplier, accounting for around 85% of all Algerian SMP imports.

World wholesale SMP prices