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The Algerian buying agency ONIL (Office National Interprofessionnel du Lait et de Produits Laitiers) issued a new tender for Skimmed Milk Powder (SMP) and Whole Milk Powder (WMP) for delivery in March/April/May. The tender will be closing on January 10th, with sellers across the globe expected to bid. While Onil closed its last tender in December, the announcement of this new tender is unsurprising; a fire broke out on 31st December 2023 at the dairy raw materials storage unit in the Algerian municipality of Bourguiga (south of Tipasa), which belongs to ONIL, destroying vital stocks that need to be recovered.
According to multiple market sources, SMP is likely to be supplied out of the EU with EU sellers looking to bid aggressively to ensure export volumes. WMP volumes are primarily supplied from New Zealand, though a small volume is also reported to be supplied from South America. However, the Red Sea trade shipping route continues to pose severe logistical challenges related to continuous attacks by Houthi rebels on ships, which has caused several freighters to detour their ships around Africa. The shipment issues in the Red Sea could benefit South American producers competing with New Zealand producers.
Mintec will continue to follow this topic closely over the coming weeks.
