Talk at the global food and beverage trade fair Anuga in Cologne, Germany has focused on the international demand for skimmed milk powder (SMP) and whole milk powder (WMP). International markets remain a key outlet to move milk powders out of the EU market.
Algeria has become an increasingly important partner for the EU as its imports both for SMP and WMP have increased year on year. Algeria’s imports of WMP from the EU in July 2023 were up 515% in volume terms compared to the same month last year, while those of SMP were up 96% in July 2023 versus July 2022. Indeed, Algeria absorbed 12% of the EU’s WMP exports in July 2023, compared with a mere 2% in July 2022; meanwhile, it took in 21% of EU SMP exports in July 2023, compared to 13% for the same month last year.
Bullish expectations resulting from recent strong price increases for EU SMP and WMP, in combination with the beginning of preparation for Ramadan, have driven more buyers from the Middle East into the market. For reference, the MBP for Skimmed Milk Powder EXW Europe [Mintec Code: J117] was last assessed on 4th October at €2,475/mt, an increase of 15.4% m-o-m. The MBP for Whole Milk Powder Spray EXW Europe [Mintec Code: J118] increased by 8.1% compared to last month and is now priced at €3,400/mt.
According to several market sources, the Algerian buying agency, Office National Interprofessional du Lait et des Produits Laitiers (ONIL), is preparing a new tender for SMP and WMP for delivery in January, February, March 2024, before Ramadan. ONIL tenders continue to be a key indicator for international demand because Algeria is one of the leading consumers and importers of dry milk powder worldwide. However, as of today, the size of the tender remains uncertain, because ONIL has not yet released this information.
