The U.S. Dairy Exporter Blog: Market Analysis, Research & News

  • CHART: SMP/NDM Exports to Philippines Surge

    By USDEC staff December 21, 2016

    Rising SMP/NDM shipments to Southeast Asia help position the United States for an overall dairy export volume gain in 2016.    

    If U.S. dairy export volume finishes the year above 2015 volume—a likely scenario given trends over the most recent five months of data—U.S. skim milk powder/nonfat dry milk (SMP/NDM) sales to Southeast Asia will be one of the reasons why.

    U.S. suppliers have taken advantage of surging Philippine milk powder imports while also seizing market share in Indonesia, even though that nation’s overall SMP/NDM imports volumes are down.

    Total Philippine SMP/NDM imports spiked 79 percent to 134,501 tons over the first nine months of 2016, compared to the same period last year. The nation has posted nine straight months of sizable year-on-year gains. The increase puts the Philippines on pace to become the third largest importer in the world behind Mexico and China (in 2015 it was the seventh largest).

    U.S. suppliers accounted for a little more than half of the new volume this year, which is primarily used in manufacturing recombined milk products, ice cream, and infant and other formulas.


    Philippines SMP/NDM imports post nine straight months of sizeable year-on-year gains

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    Interactive charts: Go to our market information section, where you can drill down interactively for granular data based on specific dates, exporters and more. Charts like the one shown above can be created in the trade flows section


    Traditionally a price-sensitive market, low international commodity pricing has helped drive this year’s surge. However, the Philippines features some key factors that generally support dairy import growth, most prominently minimal domestic milk production (the Philippines relies on imports for 99 percent of its annual dairy needs) coupled with a surging economy. The Philippine GDP rose about 7 percent this year, and the International Monetary Fund and other economists foresee similar growth at least through 2020, laying a strong foundation for dairy consumption gains.

    In Indonesia, overall SMP/NDM imports fell 2 percent to 81,034 tons in the first seven months of the year. However, U.S. exports climbed 15 percent over that same period and improved on those gains August-October. (Note: Since every country reports data on its own timetable, the latest available month differs from nation to nation.)

    Backed by the Philippines and Indonesia, overall U.S. SMP/NDM exports to Southeast Asia grew 8 percent to 159,965 tons in the first 10 months of the year. The region accounts for 34 percent of U.S. SMP/NDM sales.

    Editor's note: This analysis is based on data available on December 20. 

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    The U.S. Dairy Export Council fosters collaborative industry partnerships with processors, trading companies and others to enhance global demand for U.S. dairy products and ingredients. USDEC is primarily supported by Dairy Management Inc. through the dairy farmer checkoff. How to republish this post.  

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