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INDIA: Payout and Analysis of SMP + Butter

Skimmed milk powder (SMP) and Butter are two of the main dairy products of India. During winter, at the peak of production, Indian dairy companies produce SMP for meeting the country's ever growing full-year demand of milk.

On this page the prices of SMP and Butter are used to calculate the theoretical value of the milk used for their production.

This page offers:

Payout SMP + Butter in India

Considering the latest prices of SMP and Butter in India, and some assumptions, this Payout calculates the theoretical value of whole milk produced in India and processed into SMP and Butter.

INITIAL VARIABLES:
100 LT of Whole Milk with 3.5% p.p. Fat
and 8.5% p.p. Solids-non-fat (SNF)
100 LT of Whole Milk = 103 Kg of Whole Milk
PROCESSING of Whole Milk with 3.5% p.p. fat, 8.5% p.p. SNF
a. 3.5% p.p. Fat *103 Kg Milk = 3.61 Kg of FAT
which produces:
4.32 Kg of BUTTER 		b. 8.5%p.p. SNF *103 Kg Milk = 8.76 Kg of SNF
which produces:
9.12 Kg of SMP
330 330 300.00 200 0.040 0.090
Your values Current prices
and indicative values
Price MIN Butter Rs/Kg 330 Rs/Kg
Price MAX Butter Rs/Kg 330 Rs/Kg
Average Price Butter 330.0 Rs/Kg 330.0 Rs/Kg
Price MIN SMP Rs/Kg 330 Rs/Kg
Price MAX SMP Rs/Kg 330 Rs/Kg
Average Price SMP 330.0 Rs/Kg 330.0 Rs/Kg
Processing Cost Rs/100LT 300 Rs/100LT
P-P Expenses* Rs/100LT 200 Rs/100LT
Theoretical price 3934 Rs/100LT
50.87USD/100Kg 		3934 Rs/100LT
50.87 USD/100Kg
CALCULATE RESET
*Post Procurement Expenses

The following graph shows the historical trend of the results of the SMP + Butter Payout in India, according to the default values. The historical curve of India is compared with the trends that are obtained from the Payout by inserting the prices of SMP and Butter in other geographic areas.

Comparison between the prices of SMP and Butter

The table displays the quantities of SMP and Butter purchased in India through the NCDFI eMarket platform, and the relative sale prices.

INDIA: Quantity sold and prices of dairy products
BUTTER SMP
Month survey Px Min
(Rs/Kg)		 Px Max
(Rs/Kg)		 Quantity Sold
(Ton)		 Px Min
(Rs/Kg)		 Px Max
(Rs/Kg)		 Quantity Sold
(Ton)
Jun 2020 - - 182 - - 655
May 2020 - - 182 - - 715
Apr 2020 - - 305 - - 50
Mar 2020 - - 47 - - 550
Feb 2020 - - 425 - - 1.384
Jan 2020 330 330 1.137 330 330 722
Dec 2019 330 330 152 320 320 770
Nov 2019 - - 185 - - 2.985
Oct 2019 340 340 20 - - 1.035
Sep 2019 320 320 5 290 300 715
Aug 2019 310 310 98 284 295 675
Jul 2019 306 320 215 270 270 673
Jun 2019 305 310 750 260 270 763
May 2019 265 285 940 235 250 1.596
Apr 2019 245 265 1.056 210 215 4.070
Mar 2019 230 245 896 194 210 767
Feb 2019 230 245 273 200 205 124
Jan 2019 230 245 1.108 195 215 1.594
Dec 2018 220 240 220 185 210 2.630
Nov 2018 220 220 890 150 175 2.099
Oct 2018 212 300 1.110 140 170 812
Sep 2018 220 235 545 140 165 3.150
Aug 2018 220 270 130 135 190 1.192
Jul 2018 235 250 253 140 210 1.747
Jun 2018 235 260 650 135 210 7.394
May 2018 240 265 75 136 210 1.681
Apr 2018 245 290 5 135 175 549
Excl. Buffalo products
Source: NCDFI

The following tables compare the prices of SMP and Butter in the main playing countries in the World, converted into Rs / Kg (Rupees per kilogram). Finally, the charts complete the comparison by adding price trends in India.

/Kg International SMP price
Oceania USA Germany
2019 2020 % vs '19 2019 2020 % vs '19 2019 2020 % vs '19
January 168 216 +28,8% 152 197 +30,1% 153 208 +35,7%
February 182 215 +18,3% 156 192 +22,9% 159 203 +27,9%
March 180 206 +14,1% 148 181 +21,7% 154 197 +27,9%
April 177 197 +11,2% 151 149 -1,3% 152 164 +8,0%
May 179 191 +6,8% 159 149 -6,7% 163 167 +2,4%
June 166 197 +18,5% 160 169 +5,3% 164 186 +13,3%
July 174 204 +17,2% 157 167 +6,5% 160 187 +16,3%
August 184 162 161 -0,2% 168 188 +12,0%
September 188 166 173
October 194 179 187
November 214 189 199
December 212 195 206
Average 185 205   164 172   169 187  
SOURCES:
Germany: Süddeutsche Butter - und Käsebörse eV, Kempten
USA: USDA
Oceania: USDA
/Kg International BUTTER price
Oceania USA Germany
2019 2020 % vs '19 2019 2020 % vs '19 2019 2020 % vs '19
January 295 288 -2,2% 351 299 -14,8% 362 287 -20,5%
February 311 298 -4,2% 357 280 -21,5% 349 280 -19,7%
March 332 318 -4,1% 348 284 -18,4% 325 289 -11,1%
April 389 326 -16,3% 347 204 -41,2% 326 231 -29,1%
May 393 295 -25,0% 360 246 -31,7% 320 238 -25,6%
June 334 275 -17,6% 366 309 -15,5% 303 271 -10,5%
July 299 273 -8,9% 363 279 -23,1% 285 294 +2,9%
August 299 358 253 -29,2% 282 303 +7,7%
September 295 341 285
October 293 331 289
November 296 322 287
December 282 311 287
Average 318 295   346 272   309 271  
SOURCES:
Germany: Süddeutsche Butter - und Käsebörse eV, Kempten
USA: USDA
Oceania: USDA

Market News World

In calo US: Cheese 40# Blocks price -24,31%
In calo US: Butter, Grade AA price -4,82%
In calo US: Whey Protein Concentrate (34%) price -1,47%
In calo US: Lactose price -2,17%
In calo US: Nonfat Dry Milk Price -2,91%
In aumento Russia: Milk Production +1,73%
In aumento Japan: Caseins price +0,11%
In aumento Japan: Farm gate milk price +0,10%

Market News Europe

In calo EU-28: Farm-gate milk prices -1,23%
In calo DE, Bavaria: Farm gate milk price -0,12%
In aumento DE, Hannover: Gouda 45% price +1,75%
In aumento DE, Hannover: Edamer 40% price +1,75%
In calo Germany: Sweet Whey feed quality price -1,45%
In calo Germany: Skim Milk Powder feed price -0,50%
In calo Germany: Sweet Whey, food quality price -1,14%
In calo Germany: Skim Milk Powder (Adpi - SMP) price -2,38%

Market News Italy

In aumento IT, Parma: Parmig. Regg. PDO (15 months) price +1,20%
In aumento IT, Parma: Parmig.Regg. (24 months) price +0,97%
In aumento IT, Parma: Parmig. PDO Regg. (18 months) price +1,06%
In aumento IT, Parma: Parmig. Regg. PDO (30 months) price +0,88%
In aumento IT, Milan: foreign Spot Milk 0,03% price +2,63%
In aumento IT, Milan: Grana Padano RISERVA PDO (20 months) price +0,58%
In aumento IT, Milan: Parm Reg. PDO (30 months) price +0,47%
In aumento IT, Milan: Spot Milk price from Germany +2,90%
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