FAO Dairy Price Index - January 2024

The FAO Dairy Price Index averaged 118.9 points in January, virtually unchanged from its revised December value and standing 25.8 points (17.8%) below its value in the corresponding month a year ago. 

In January, international price quotations for butter and whole milk powder (WMP) increased, nearly offsetting declines in those for skim milk powder (SMP) and cheese. 

World butter prices rose due to increased demand from Asian buyers, coupled with more robust demand from the retail sector for replenishing stocks and lighter inventories in Western Europe. Meanwhile, WMP prices also increased, reflecting increased demand for medium-term deliveries, especially by China, and seasonally falling production in New Zealand. 

By contrast, international prices of SMP and cheese declined as demand for spot supplies remained muted and immediate requirements of buyers were adequately covered.

 

Date	Butter	Skim Milk Powder	Whole Milk Powder	Cheddar Cheese
2018	5587	1834	3060	3736
2019	4443	2440	3186	3435
2020	3844	2606	3041	3506
2021	4995	3181	3855	3850
2022	6608	3865	4253	4998
2023	5100	2693	3327	4486
2024-01	5850	2732	3512	3910

Dairy Prices have started its upward trajectory.

Further, with farmer protests in Europe coupled with strict regulations imposed there, would dampen production going forward, indicating hardening of dairy prices going forward.