Skim Milk Powder (SMP) Price Trend and Forecast

Skim Milk Powder (SMP) Regional Price Overview

Get the latest insights on price movement and trend analysis of Skim Milk Powder (SMP) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Skim Milk Powder (SMP) Price Trend for the First Half of 2024

In the first half of 2024, the price trend for skimmed milk powder (SMP) in India experienced a significant decline, leading to major challenges for both dairy companies and farmers. After starting the year with relatively stable prices, the market saw a steady drop in SMP prices, largely due to oversupply and reduced demand. The decline in prices can be attributed to a rise in cow milk production, which contains a higher percentage of solids-not-fat (SNF), leading to an excess of SMP as a byproduct of increased fat production. This surplus created a burden for dairy companies, which struggled to sell their stock at profitable rates, and the situation was exacerbated by limited export opportunities due to global market conditions.
 

Skim Milk Powder (SMP) Price Chart

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As a result, dairy companies were forced to reduce the prices they paid to farmers for milk, causing widespread discontent among milk producers and sparking protests in regions like Maharashtra. Despite efforts by the government to provide subsidies to mitigate the impact on farmers, the crisis deepened. The SMP oversupply is expected to worsen in the upcoming flush season, putting further downward pressure on prices. While some companies in South India lowered consumer milk prices in response to cheaper procurement, other regions raised milk prices to offset losses from SMP sales.

Analyst Insight

According to Procurement Resource, a decline in SMP prices is anticipated to continue influencing the dairy sector, as the production of SMP remains high and demand remains limited, particularly in export markets.
 

Skim Milk Powder (SMP) Price Trend for the Second Half of 2023

The skim milk prices were observed to be fluctuating throughout the said period of the second half of the year 2023, mostly on the lower end of the price curve. This price trend was largely driven by the dull demands of the consuming industries. After falling considerably globally throughout the third quarter from July to September the SKM prices started to marginally stabilize at the beginning of the fourth quarter in October.

This steady inclination continued for a month as the baking and food industries prepared for the Christmas holidays. However, the month of December again saw a decline in market rates since the supplies were increased and industrial consumption went on the back foot again. So, this depreciation in skim milk powder prices despite a rise in whole milk prices shows a tampering customer interest in the product. Overall, mixed market sentiments were observed.

Analyst Insight

According to Procurement Resource, the market analysis suggests that the demands will continue to be dim, however, a fall in the global SKM production is also anticipated.
 

Skim Milk Powder (SMP) Price Trend for the First Half of 2023

oughout the first half of 2023, especially in the European region. Prices for Skim Milk Powder (SMP) remained on a declining trajectory and continued to fall throughout the said period. The primary region for the decline in prices was reduced consumption.

A considerable decline in Skim Milk Powder (SMP) consumption has been noticed in countries like USA, Europe, and China; the majority reduction has been contributed by restaurants. The ease in freight and supply amidst declined consumption caused Skim Milk Powder (SMP) prices to fall further. Fluctuations in dollar rates in the international market also manipulated the export sentiments for Skim Milk Powder (SMP).

Analyst Insight

According to the Procurement Resource, Skim Milk Powder (SMP) prices are likely to fall in the coming quarter given the reduced demand and over-stocked inventories.

Procurement Resource provides latest prices of Skim Milk Powder (SMP). Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time pThe price trend for Skim Milk Powder (SMP) observed bearish sentiments threriod; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.