FAO dairy index falls for the seventh month in a row

The FAO dairy index has fallen for the seventh consecutive month. The measure of the global sentiment in dairy trade dropped in January to its lowest level since February 2024. Compared to December, the dairy index fell by 5% to 121.8 points. Year-on-year, there is a decline of 15%. The peak last year was in June at 155.5 points. Since then, prices have dropped. In the past two months, the decline has been the strongest. Especially the global pricing of cheese and butter is the cause of the price drop in the dairy market. A slight uptick in the past month in the prices of milk powders could not offset this decline. Strong competition has especially led to lower prices for cheese. In New Zealand, slightly higher prices were paid for cheese, but ample supplies in Europe and the United States have caused the world market price to drop significantly. Butter is also widely available, partly due to large stocks in Europe. Increased demand from traditional import regions, particularly for skimmed milk powder, has led to a recovery in powder prices after price declines in previous months.