ONIL submits milk powder tender for Q3/Q4 2024 delivery

Following limited market activity in the milk powder market during the second half and June, the Algerian buying agency ONIL (Office National Interprofessionnel du Lait et de Produits Laitiers) returned to the market this week, issuing a new tender for Skimmed Milk Powder (SMP) and Whole Milk Powder (WMP) for delivery in September/October/November 2024. The tender will close on June 26th with sellers across the globe expected to bid. Several market sources indicated the tender during the week prior, as stocks in Algeria have been reported as limited. Industry participants have awaited the tender, as international demand has remained lacklustre recently. While market sources anticipate that traders will bid aggressively on the tender to generate some trade flows during the summer holiday period, producers indicated mixed interest, as stocks are reported as tight for SMP and WMP across the EU, and manufacturers are looking to ensure supply security for committed contracts.

According to multiple market sources, SMP for the tender is likely to be supplied out of the EU, with EU sellers looking to offer aggressively to ensure export volumes.? EU SMP prices have been reported as competitive internationally. WMP volumes are expected to be primarily supplied from New Zealand, due to a more competitive price level compared to EU producers.

Expana 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 [email protected]