USDA Oceania Skim Milk Powder 08/14 09:30

AMS_1038 MARS

Skim Milk Powder - Oceania

Released on August 14, 2025

The upper end of the price range for Oceania skim milk powder (SMP) increased 
substantially during the reporting period while the bottom of the price range 
held steady. Domestic prices stayed consistent with the prior reporting period, 
but stronger export demand for near-term deliveries drove up prices at the high 
end of the spectrum. 

A recent report from the USDA Foreign Agricultural Service projects a 3 percent 
increase in SMP production in New Zealand in 2025, but a 3 percent decline in 
Australian SMP production. The increase in output in New Zealand follows from 
an increase in butter production, meaning more skim milk is available for 
drying. Export demand is also strong, with shipments to China higher through 
the first six months of the year. In Australia, lower milk production in 2025, 
and an ongoing shift towards cheese production, is projected to result in lower 
SMP production and exports.

At GDT event 385, the SMP price index for the September contract increased by 
8.4 percent, suggesting strong near-term demand. Despite this near-term 
strength, the overall SMP price index increased by only 0.4 percent, with gains 
in the September, October, and January contracts offset by declines in the 
price indices for the November and December contracts. The volume of SMP sold 
at event 385 was significantly higher than at event 384 and marginally higher 
than the same time period a year ago.

Prices for: Oceania, All First Sales, Free on Board - Port, Edible Skim Milk 
Powder
Price Range - 1.25% Butterfat; Dollars per Metric Ton: 2800 - 3325


Information for the period August 4 - 15, 2025, issued biweekly

Secondary Sourced Information:

During GDT event 385 on August 5, 2025, the average price for SMP across all 
contract periods was $2,805 per metric ton, corresponding to a 0.4 percent 
increase in the SMP price index from the prior event. The average price for the 
September contract was $3,018 per metric ton, with the September price index up 
8.4 percent. More information on SMP prices at the most recent GDT event can be 
found at 
https://www.globaldairytrade.info/en/product-results/skim-milk-powder/.    

Dairy Australia recently released export data for Australia showing skim milk 
powder (SMP) export volumes from July 2024 - June 2025 were 158,126 metric 
tons, up 10.7 percent from the same time period a year earlier.

[0600059B]