Mintec to launch additional EU Dairy Mintec Benchmark Prices

All Market Notes 25 April 2023

Following a period of market feedback, Mintec has decided to launch three weekly dairy Mintec Benchmark Prices (MBP) and monthly dairy Mintec Benchmark Prices (MBP) for the EU markets. The weekly assessments will begin publication effective Thursday 11th May 2023, and the monthly assessment on Wednesday, 31st May.

The initial proposal was announced in a market note published on 6th April 2023, which can be viewed here.

The specifications for these assessments are as below:

The assessments will reflect the transactable value at 16:00:00 London time.

The EU is one of the largest players in the global dairy industry and a key exporter. The launch of the new assessments will give users greater clarity in understanding price movements and allow for product comparisons at a regional level.

Milk protein concentrate (MPC) is a key protein source for food supplements like ice cream, bakery, desserts, cheese production etc. The launch of the EU MPC assessment will provide transparency in a market which is currently very opaque and lacks independent and impartial price benchmarks.

The skimmed milk concentrate (SMC) assessments will complement Mintec’s existing EU SMC assessment and allow for more granular comparisons between two major producing countries. Additionally, the price and availability of SMC act as indicators on how much skimmed milk powder (SMP) and butter are being produced. This will allow for Mintec customers to gain additional insight on when market conditions favour the production of those products over cheese and whey.

The cream assessment compliments Mintec’s existing offering within the dairy markets and will allow Mintec customers to compare prices in major producing origins. Furthermore, the assessment will provide an additional view into butter and chocolate production costs, as cream is a major input for these products.

Please send any questions or comments about this market note to Methodology@mintecglobal.com, and clearly state which market note your comments relate to, and if the comments are intended for publication by Mintec.

Mintec will acknowledge receipt of all comments by email.