FAO Dairy Price Index shows a third consecutive decline

The international dairy prices decreased again in September. The FAO Dairy Price Index stood at 148.3 points, a decrease of 2.6% compared to August. Butter prices are falling sharply worldwide. Milk powder prices are also under pressure from declining demand. The declining trend continues for the third month. The largest price drop was seen in butter (-7%), due to a seasonal increase in cream supply and decreasing ice cream consumption in the northern hemisphere. Milk powder prices fell due to weaker import demand and sharper competition in exports. Cheese prices only decreased slightly. In the European Union, stable production and less export slightly pressured prices, while in Oceania, tight supply and strong Asian demand resulted in higher quotations. Despite the recent decline, dairy prices are still nearly 9% higher than a year ago, with butter prices well above the average for 2024. The market is now particularly looking at the spring production in New Zealand and the demand development in Asia.