The FAO Dairy Price Index marking a downturn after six months of continuous increases
Source: The DairyNews
In April 2024, the FAO Food Price Index (FFPI) rose to 119.1 points, marking a 0.3-point increase (0.3 percent) from the revised March level. This uptick was primarily driven by higher meat prices, coupled with smaller increases in vegetable oil and cereal indices.
However, decreases in sugar and dairy product prices partially offset these gains. Despite the second consecutive monthly increase, the FFPI remained 9.6 points (7.4 percent) lower than its value one year ago.
The FAO Dairy Price Index, a component of the FFPI, experienced a downturn in April after six consecutive months of increases. With an average of 123.7 points, it declined marginally by 0.3 points (0.3 percent) from March. This decrease, however, positioned the index 5.5 points (4.3 percent) below its value compared to the corresponding month last year.
Skim milk powder prices saw the most significant decline, driven by sluggish import demand amidst ample exportable supplies, particularly in Western Europe. World cheese prices also decreased slightly, primarily influenced by the strengthening of the United States dollar. Conversely, butter prices continued to rise due to steady import demand and relatively tighter inventories in Western Europe.
Meanwhile, whole milk powder prices experienced a moderate rebound, attributed to increased demand for medium-term supplies and seasonal declines in milk production in Oceania. These fluctuations reflect the complex interplay of supply and demand dynamics within the global dairy market, FAO writes.
The FAO Dairy Price Index, a component of the FFPI, experienced a downturn in April after six consecutive months of increases. With an average of 123.7 points, it declined marginally by 0.3 points (0.3 percent) from March. This decrease, however, positioned the index 5.5 points (4.3 percent) below its value compared to the corresponding month last year.
Skim milk powder prices saw the most significant decline, driven by sluggish import demand amidst ample exportable supplies, particularly in Western Europe. World cheese prices also decreased slightly, primarily influenced by the strengthening of the United States dollar. Conversely, butter prices continued to rise due to steady import demand and relatively tighter inventories in Western Europe.
Meanwhile, whole milk powder prices experienced a moderate rebound, attributed to increased demand for medium-term supplies and seasonal declines in milk production in Oceania. These fluctuations reflect the complex interplay of supply and demand dynamics within the global dairy market, FAO writes.
