Europe exports less milk powder
European exports of milk powder have fallen dramatically this year. During the first half of 2013 the EU countries exported 31% less skim milk powder (SMP) than they did during the first half of 2012. Lesser volumes of product have been exported to virtually all of the main buyers of European SMP. Exports to Algeria, the largest external market for European SMP, were down 19% this year. Of the 20 largest markets that the EU exports SMP to, the only ones to receive more product during the first half of this year compared with the last year were: Russia, Kazakhstan, and Ghana. Whole milk powder (WMP) export volumes are also down this year. Export volumes dropped 15% in the first half of 2013 compared with H1-2012. The EU did manage to ship more product into Nigeria, but volumes into Algeria were much lower than normal. European internal prices of SMP and WMP are currently 35% to 40% higher than they were a year ago. Prices currently on offer are much higher than they have been in recent years. The strength of Europes internal markets have encouraged producers to sell to the local markets. Less milk powder has been produced within the EU this year. Data for the first four months of 2013 indicate that SMP production is down by at least 11% and 7% less WMP was produced. Tight milk supplies, particularly in the early part of the year, meant less export type product was produced with the focus remaining on the liquid milk, fresh cream and cheese requirements of Europes domestic markets.