The FAO Dairy Price Index averaged 116.1 points in December, up 1.9 points (1.6%) from November, marking the third consecutive monthly increase and standing 22.2 points (16.1%) below its corresponding value one year ago.
The December increase in the index was led by higher price quotations for butter, whole milk powder (WMP) and cheese.
As for butter and cheese, international prices rose, principally underpinned by strong internal sales in Western Europe ahead of the holiday season in contrast with a continued supply tightness in the market, despite the region’s milk deliveries rising seasonally. In addition, increased import demand from the Near East also supported cheese price quotations.
Meanwhile, strong global import demand led international WMP prices to rise, while markets in Europe remained largely inactive due to holidays.
By contrast, world skim milk power prices fell slightly due to limited demand.
In 2023 as a whole, the FAO Dairy Price Index averaged 118.8 points, down 23.6 points (16.6%) below the average for 2022, underpinned by lackluster import demand, especially for spot supplies, amid ample stocks in importing countries, reflecting price declines across all dairy products.
Meanwhile, the first GDT Auction of 2024 also saw prices tightening further.
Dairy Prices (USD/MT) during the year 2023:
| Date | Butter | Skim Milk Powder | Whole Milk Powder | Cheddar Cheese |
| 2023-01 | 5290 | 2915 | 3507 | 4986 |
| 2023-02 | 4968 | 2781 | 3424 | 4809 |
| 2023-03 | 5021 | 2737 | 3410 | 4652 |
| 2023-04 | 5019 | 2672 | 3281 | 4455 |
| 2023-05 | 5058 | 2731 | 3423 | 4057 |
| 2023-06 | 5167 | 2740 | 3402 | 3969 |
| 2023-07 | 5062 | 2606 | 3418 | 3985 |
| 2023-08 | 4825 | 2466 | 3090 | 3918 |
| 2023-09 | 4736 | 2432 | 2995 | 3842 |
| 2023-10 | 4994 | 2657 | 3229 | 3782 |
| 2023-11 | 5409 | 2792 | 3324 | 3764 |
| 2023-12 | 5604 | 2767 | 3404 | 3784 |
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