SMP up amid subdued GDT

Published 7 March 18

Skim milk powder (SMP) prices had a boost in the latest New Zealand Global Dairy Trade (GDT) event with a price index increase of 5.5%. In general the event was more subdued, with most products down and the overall price index down 0.6%, so SMP bucked the trend this week.

This was partly driven by a 45% increase in price index for contract period 1, which are sales for delivery in the next month. A closer look shows that the higher price in contract period 1 is due to a type of SMP sold. Sales in contract periods 2-5, which relate to deliveries from May to August, were a mix of medium heat, UHT and low heat powders, and sourced from the EU, India and NZ. Sales in contact period 1 meanwhile were limited to SMP for UHT milk, which generally has a price premium.

18.03.08 GDT SMP