Whole milk powder varies considerably in price

Buyers of New Zealand whole milk powder (WMP) pay around €600 per tonne less than for European product; depending on where they are located, because transport costs and the like also play a role. However, it is a significant price difference largely driven by the 'purchase bonus' that all buyers of New Zealand produce have. The Kiwi dairy industry is still mainly focused on the production of whole milk powder and makes it the cheapest. 

In Europe the situation is often the other way around. There, skimmed milk powder is the norm and whole milk powder is less produced and less demanded. Separating fat and protein yields more in Europe and anyone who wants whole milk powder must pay extra.

If New Zealand now did the same as Europe, it could theoretically earn much more, because at current prices skimmed milk powder and butter each yield much more than in the EU. At the last GDT auction, butter sold for the highest price in five years. However, New Zealand dairy has difficulty adapting and has been lagging behind market demand for months. Moreover, American whole milk powder, with a price of €4.500 to €4.750 per tonne, is much more expensive than the European product.
 

Although relatively expensive and rarely traded by trading companies, whole milk powder is still a product that should not be neglected for European and Dutch dairy companies. In the first two months of this year, Dutch producers sold more than 19.000 tons of full powder across the border, which is more than 1.000 tons more than in the same period last year. European exports of whole milk powder largely disappear to the Middle East.