FAO Dairy Price Index Soars as Cheese Takes the Spotlight

Dairy Price Surge in January 2025

The Food and Agriculture Organization's (FAO) Dairy Price Index reached an average of 142.9 points in January 2025, marking an increase of 3.3 points (2.4%) from December 2024 and a striking 24.3 points (20.4%) above its value from the previous year.

Cheese storage stood at the forefront of this hike, with international quotations increasing by 7.6% month-over-month. This surge was attributed to escalated global import demand amid a slow recovery in production and notable retail sales in major dairy-producing countries.

Contrarily, international butter prices continued to drop, despite rising demand from food manufacturers in Europe and Oceania. The prices of skimmed milk powder and whole milk powder saw declines due to recovered production in Europe and a low-driven internal and import demand.

Impact on Overall Commodity Prices

When compared to the previous year, the general index in January was 7.3 points (6.2%) ahead of its level from a year ago. However, it was still 35.3 points (22.0%) below the peak reached in March 2022.

The general commodity index averaged at 124.9 points in January 2025, indicating a drop of 2.1 points (1.6%) from the revised December figures. Declines in sugar, vegetable oils, and meat price indices considerably offset the rises in dairy and cereal prices.

Photo credit: Diario Lechero