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 June/July/August/September 2024.
The tender will be closing on March 27th with sellers across the globe expected to bid. The launch of the tender came as no surprise to the market following the issuing of new import permits in late February. However, market sources across the globe have been waiting for the tender as international demand was reported to be lacklustre during Q1 2024.
According to multiple market sources, SMP is likely to be supplied out of the EU, with EU sellers looking to offer aggressively to ensure export volumes. Additionally, EU SMP prices have been reported as competitive on the international market. WMP volumes are primarily supplied from New Zealand, due to a more competitive price level compared to EU producers. Furthermore, the continued attacks by the Houthi rebels in the Red Sea have caused several freighters to reroute their ships around Africa. However, with a June-September delivery horizon, market participants do not expect to see challenges for New Zealand exporters.
Mintec will continue to monitor the market situation closely during the coming weeks and will follow up with any news regarding the dairy market. If there are any questions or comments, please feel free to contact me directly.
Sandro Schulz Mintec EMEA Protein Team Lead
+49 15510 096845 sandro.schulz@mintecglobal.com
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