Having bounced back relatively strongly in May and June, prices for European-sourced skimmed milk powder (SMP) have been under downward pressure since July and were edging closer to falling below the €2,000/t benchmark.

However, spot market prices for SMP have been given a much-needed injection of life this week thanks to strong export demand from Algeria. ONIL, the Algerian state entity charged with buying dairy, has stepped into the global market in the last week with a new tender seeking up to 15,000t of SMP for delivery in October and November 2020.