EU Skim Milk Powder Production Expected to Decline in 2024 Amid Shift Towards Cheese Production
In 2024, skim milk powder (SMP) production in the European Union is projected to experience a slight decline, according to a recent USDA Dairy World Markets and Trade report. Dairy processors in the EU are increasingly prioritizing cheese production over SMP and butter, driven by higher profit margins in the cheese sector.
This strategic shift comes as a response to lower farm-gate milk prices and elevated production costs, which have made SMP production less lucrative. As a result, EU SMP exports are also anticipated to decrease, further impacted by heightened global competition.
Key markets for EU SMP, including the Middle East, North Africa, and Southeast Asia, are seeing increased local production and are shifting their imports towards other major exporters like New Zealand and Australia. This evolving market dynamic poses challenges for the EU's SMP export sector, necessitating a reevaluation of production strategies within the region.
Key News of the Week
