Global Dairy Market Trends: Powdered Milk Prices and Demand

In May, the global dairy market saw a divergence between the performance of powdered milk products and those related to dairy fats. The demand for whole milk powder (WMP) and skimmed milk powder (SMP) continued to be robust, which supported their prices even as global milk production rose. The average price for WMP was reported at $3,772 per ton, marking a monthly increase of 0.8%. Meanwhile, the price of SMP saw a marginal rise of 0.1% to $3,552 per ton.

Conversely, the market for dairy fats, such as anhydrous milk fat (AMF) and butter, experienced a less favorable environment. The availability of cream and dairy fats increased, which led to a decrease in the price of AMF by 1.8%, bringing it down to $6,344 per ton. Despite this, butter prices rose by 2.7% to $5,674 per ton.

Recent events in the Global Dairy Trade have mirrored these trends, with consistent price gains observed in powdered milk categories. The industrial returns indicate that WMP and SMP are capturing significant value per processed liter due to sustained international demand.

The contrasting market conditions illustrate the variable dynamics within the dairy sector, influenced by supply and demand factors. As production levels continue to grow globally, the market's ability to sustain prices in specific categories remains a point of interest for industry stakeholders.