Karnataka Milk Price Increase
The Karnataka government raised the price paid to milk producers by a modest amount, effective November 1. The hike is expected to lift retail milk prices and overall dairy costs in the state.
Skim Milk Powder (SMP) Price Trend Analysis 2026: Market Insights, Supply Demand Analysis, Price Drivers, Latest News & Historical Prices
Written BySiddharth David
Skim Milk Powder (SMP) Latest Development
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Skim Milk Powder (SMP) Price Trend Q3 2026
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Skim Milk Powder (SMP) | European Union | EXW | USD 3,323.01/MT | August 2026 |
| Skim Milk Powder (SMP) | India | CIF | USD 3,241.88/MT | August 2026 |
| Skim Milk Powder (SMP) | China | CIF | USD 3,222.93/MT | August 2026 |
| Skim Milk Powder (SMP) | Australia | CIF | USD 3,250.21/MT | August 2026 |
| Skim Milk Powder (SMP) | Germany | CIF | USD 3,158.76/MT | August 2026 |
| Skim Milk Powder (SMP) | European Union | EXW | USD 3,128.81/MT | July 2026 |
| Skim Milk Powder (SMP) | India | CIF | USD 3,241.88/MT | July 2026 |
| Skim Milk Powder (SMP) | China | CIF | USD 3,222.93/MT | July 2026 |
| Skim Milk Powder (SMP) | Australia | CIF | USD 3,250.21/MT | July 2026 |
| Skim Milk Powder (SMP) | Germany | CIF | USD 3,158.76/MT | July 2026 |
Stay updated with the latest Skim Milk Powder (SMP) prices, historical data, and tailored regional analysis
Skim Milk Powder (SMP) Price Trend Q3 2026
- Skim milk powder prices fell slightly in early July but recovered through August and September, as tight supply and strong export demand lifted values in markets.
- Higher milk output in major dairy regions increased raw material availability, but limited drying capacity kept finished powder supply tight in some markets.
- Demand from food processors and importers in North Africa and Southeast Asia stayed strong, although weaker buying from China limited the overall price gains.
In the European Union, the average price of Skim Milk Powder (SMP) was ~USD 3,128.81/MT (EXW) in July and ~USD 3,323.01/MT in August, showing a ~6.2% increase. In Germany, average import prices held steady at approximately USD 3,158.76/MT (CIF) and Australia's average price was about USD 3,250.21/MT (CIF) during the first two months of Q3’26. The quarter began on a weak note, with prices in New Zealand falling sharply in early July. Sentiment turned in August. In the US, inventories became very tight as plants focused their dryers on certain grades, and strong domestic and export demand pushed prices higher through September. Prices in New Zealand also rose firmly in August and held at higher levels into September, helped by strong global demand for milk powders. In Europe, export demand was the key driver, with SMP shipments to non-EU countries up 11% in the first five months of the year, led by strong growth to Egypt and Indonesia. Higher milk collections and weaker Chinese imports limited further gains.
Analyst Insight
According to Procurement Resource, in the near term, SMP prices are likely to stay firm on tight supply and strong export demand, though rising milk output may limit further increases.
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- Skim Milk Powder (SMP) markets strengthened during the early part of Q2’26 before easing toward June as improved milk availability and cautious purchasing reduced upward pressure.
- Higher milk collection supported powder production, while improving processing availability reduced supply concerns and limited further gains during the latter part of the quarter.
- Bakery, confectionery and food-processing demand remained steady, but weaker infant-formula and export buying encouraged processors to maintain need-based procurement.
In the European Union, the average price of Skim Milk Powder (SMP) stood at ~USD 3,141/MT (EXW) in June. European SMP conditions softened toward the end of Q2 as seasonal milk production improved and processors maintained sufficient powder availability. Food manufacturing and export demand provided support, but buyers resisted aggressive restocking as expectations of better supply increased. The average price of Skim Milk Powder (SMP) in China came in at ~USD 3,235/MT (CIF) in June. Chinese conditions also became softer as greater domestic milk processing reduced reliance on imported powder. According to USDA, China’s SMP production was forecast at 75,000 MT in 2026, while imports were expected at 195,000 MT, pointing to improving local availability and weaker import requirements. Demand from bakery and food applications remained supportive, but softer infant-formula consumption and cautious distributor purchasing limited stronger market momentum.
About Skim Milk Powder (SMP)
Skim Milk Powder or skimmed milk powder is extracted by eliminating water from pasteurised skim milk (fat-free milk). It is made up of 5% or less moisture (by weight) and 1.5% or less milkfat (by weight) along with a minimum milk protein content of around 34%. Skim Milk Powder has been categorised for use as an ingredient based on the heat treatment process utilised during its manufacture.
Skim Milk Powder (SMP) Product Detail
Industrial Uses
Confectionaries, Baby food, Bakery, Chocolates, Cream Cheese
Synonyms
Powdered milk, Dried milk, Non-fat dry milk
Supplier Database
Arla Foods Amba, Dairy Farmers of America Inc, Nestlé SA, Danone S.A, Westland Milk Products
Regional Coverage
Asia Pacific
China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe
Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America
United States and Canada
Latin America
Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa
South Africa, Nigeria, Egypt, Algeria, Morocco
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Skim Milk Powder (SMP) Production process
- Production of Skim Milk Powder via Spray Drying Process.
In this process, pasteurised non-fat skimmed milk is concentrated in an evaporator, reducing the content to almost 50% milk solids. The concentrated milk obtained in the previous step is then sprayed into a heated chamber, almost instantly evaporating the water content and leaving behind fine powdered particles of milk solids.
Our Price Analysis Methodology
About the Author
Siddharth David
Manager - Market Research
Delivering market research and procurement intelligence at Procurement Resource with a focus on economic forecasting, commodity analysis, and client advisory to help sourcing teams make data-backed purchasing decisions.
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Short-term and long-term price outlooks and forecasts
Supply–demand dynamics and capacity-driven market analysis
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