FAO Dairy Price Index Rises in May Amid Strong Global Demand and Production Concerns
Source: The DairyNews
The FAO Dairy Price Index reported an increase to 126.0 points in May 2024, up by 2.3 points or 1.8 percent from April, marking a 3.5 percent rise compared to the same period last year. This increase reflects a broad rise in international price quotations for all dairy products indexed.
The upward trend in dairy prices is largely fueled by heightened demand from the retail and food services sectors as the summer holiday season approaches. Additionally, market anticipations of potentially lower-than-usual milk production in Western Europe have played a significant role in boosting dairy prices. This is compounded by a seasonal decline in milk production in Oceania, which typically influences global dairy markets.
Moreover, there has been a resurgence in import demand for spot dairy supplies, particularly from countries in the Near East and Northern Africa, further driving up prices. These factors combined have contributed to the overall increase in dairy price quotations, reflecting a robust demand-supply dynamic as global markets prepare for peak seasonal consumption.
Moreover, there has been a resurgence in import demand for spot dairy supplies, particularly from countries in the Near East and Northern Africa, further driving up prices. These factors combined have contributed to the overall increase in dairy price quotations, reflecting a robust demand-supply dynamic as global markets prepare for peak seasonal consumption.
