News Dairy
FAO dairy index falls for seventh consecutive month
The FAO Dairy Index has fallen for the seventh consecutive month. This measure of global sentiment in the dairy trade fell in January to its lowest level since February 2024.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Compared to December, the dairy index fell by 5% to 121,8 points. On an annual basis, this represents a decline of 15%. The peak was last June at 155,5 points. Prices have fallen since then, with the decline being most pronounced in the past two months.
The global price formation of cheese and butter is the main cause of the price drop in the dairy market. A slight rebound in milk powder prices over the past month could not offset this decline.
Fierce competition has led to lower prices, especially for cheese. While slightly higher prices were paid for cheese in New Zealand, ample supplies in Europe and the United States have significantly lowered global market prices.
Butter is also in high supply, partly due to large stocks in Europe. Increased demand from traditional importing regions, particularly for skimmed milk powder, has caused powder prices to recover after falling in recent months.