Skim Milk Powder prices followed a broadly mixed trajectory during the second half of 2025. Through the third quarter, prices initially held at supported levels, benefiting from constrained output in Oceania during the Southern Hemisphere winter and seasonal production dips in the United States. Limited export availability from New Zealand provided near-term tightness, keeping prices relatively firm against the backdrop of softer broader dairy market conditions. Demand from import-dependent markets, however, remained subdued, with Southeast Asian buyers showing cautious procurement behaviour and reduced purchasing activity.
As the quarter drew close, supply conditions shifted materially. Milk production accelerated across multiple major exporting regions simultaneously, including New Zealand, South America, and Europe, channelling significantly greater volumes toward powder manufacturing. This increase in production translated into rising stock levels and downward price pressure entering the fourth quarter. Global auction results reflected this deterioration progressively, with successive declines recorded across key price indices. Buyer participation weakened as importers drew on existing inventories and adopted a measured, needs-based procurement approach. Skim milk powder demonstrated relative resilience compared to other dairy commodities, holding largely stable in certain auction events even as broader dairy prices declined.
Analyst Insight
According to Procurement Resource, skim milk powder prices are expected to remain range bound in the near term, with ample global supply continuing to limit meaningful upside.
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Skim Milk Powder prices followed a broadly mixed trajectory during the second quarter of 2025. Early in the quarter, prices moved higher, supported by a resurgence in export market demand. Buyers in South America, particularly Brazil, actively replenished stock levels, contributing to improved offtake from Oceania origins. The conclusion of the Ramadan period across Muslim-majority markets in Asia and Africa, combined with the onset of the ice cream production season, provided additional demand support during this phase.
However, market conditions shifted considerably as the quarter advanced. A sharp surge in milk production across major exporting nations, led by New Zealand, created significant supply pressure that gradually overwhelmed demand. Offered volumes at key global dairy auctions rose considerably, reflecting inventory accumulation driven by the disconnect between accelerating production and softer export demand. European skim milk powder became less competitive in international markets as currency appreciation deterred foreign buyers. Chinese import patterns also shifted structurally, with buyers increasing purchases of skim milk powder while reducing whole milk powder volumes, though this provided insufficient support to offset the broader supply-driven weakness.
Skim Milk Powder or skimmed milk powder is extracted by eliminating water from pasteurised skim milk (fat-free milk). It is made up of 5% or less moisture (by weight) and 1.5% or less milkfat (by weight) along with a minimum milk protein content of around 34%. Skim Milk Powder has been categorised for use as an ingredient based on the heat treatment process utilised during its manufacture.
Confectionaries, Baby food, Bakery, Chocolates, Cream Cheese
Powdered milk, Dried milk, Non-fat dry milk
Arla Foods Amba, Dairy Farmers of America Inc, Nestlé SA, Danone S.A, Westland Milk Products
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
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In this process, pasteurised non-fat skimmed milk is concentrated in an evaporator, reducing the content to almost 50% milk solids. The concentrated milk obtained in the previous step is then sprayed into a heated chamber, almost instantly evaporating the water content and leaving behind fine powdered particles of milk solids.
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