Milk and Skimmed Milk Powder

1. Dairy scenario in 2015
 Oceania milk production would increase by around 5% in 2015 ( Jan-Dec) compared
to 2014 on the back of increase in cow heads amid expected optimum weather
condition
 Global milk production would be high as cattle population likely to increase as lower
feed price amid optimum weather condition
 Higher production of milk would boost higher processing volume across the global and
SMP production volume would increase by 4.9%. At the same FTA between China
and Australia would boost higher processing of WMP/SMP and cheese.
 By assuming deficit monsoon in 2015/16 amid incremental growth in cattle population
would support increase in milk volume by 3.2% and estimated liquid milk production
volume would be around 144 million mt.
 By considering historical conversion volume of liquid intomilk powder, it is estimated
that domestic SMP production would be around 540 th mt, higher by 7.5% compared
to 2014
 Global higher supply of SMP would keep a tough competition between SMP Oceania,
SMP EU and SMP India.
 Strong supply amid tough competition would keep price of SMP under pressure in
2015. Export demand for SMP would be lower whereas domestic consumption would
steady growth in 2015