Downward trend for gap between food and feed grade SMP prices

Published 31 October 17

Over the last three years the gap between food and feed grade SMP prices has been narrowing, according to prices from the key producing countries of Germany and the Netherlands. For the three years to December 2016 the premium of food grade SMP over feed grade SMP was €219/tonne, while in January to August 2017 the average premium has fallen to €117/tonne. Although there is certainly volatility in the food-feed premium, it does not necessarily correlate with overall SMP price trends.

2017.11.03 SMP prices

However, with 96% of SMP stocks now over 1 year old, it is questionable whether this will meet the stricter requirements of food manufacturers. There is therefore potentially a large supply of feed grade SMP waiting in the wings. This imbalance in stock could potentially influence feed and food prices and the food-feed premium in the future – if the EU works to clear their stocks.

2017.11.03 SMP premium