News Milk
Dairy index falls below last year's level
The international dairy market continues its downward trend. The FAO dairy price index fell by 3,1% to 137,5 points in November, 1,7% below last year's level. The declines are broad-based, with all major dairy categories becoming cheaper.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Rising milk production in major export regions is putting pressure on the market. In the EU, stocks of butter and skimmed milk powder are high, while New Zealand experiences seasonally higher milk supplies. This combination creates ample export availability and intensified competition among major suppliers.
The sharpest price drops occurred for butter and whole milk powder, primarily due to increasing volumes available for export and increased competition among major suppliers. Skimmed milk powder declined less sharply: while widely available, the market still found some support in continued, albeit modest, demand.
Cheese prices fell the least. Stocks are sufficient in the EU and Oceania, but strong demand from Asia and the Middle East is preventing a sharper price drop. The cheese index even remains almost 10% higher than last year.