In February, the Food and Agriculture Organization’s (FAO) Dairy Price Index showed an average of 120.0 points, marking a 1.1 percent increase from January. However, the index remained 13.4 percent below the corresponding month last year, standing at 18.6 points lower.
Whole milk powder prices continued their upward climb, albeit at a slower pace. This trend was primarily driven by increased import demand, particularly from China. However, this positive momentum was partially offset by a decline in prices within the European Union.
On the other hand, skim milk powder prices remained stable. The slight increase in Oceania prices was nearly balanced out by a reduction in prices within the European Union. This equilibrium was influenced by lower import demand from the region, attributed to elevated shipping costs and transportation delays arising from the conflict in the Red Sea.
International cheese prices experienced a marginal increase, buoyed by a positive shift in buying interest from Asia. This change in dynamics was further influenced by lower inventories in the European Union during February.
As reported in the FAO,The FAO Food Price Index (FFPI) stood at 117.3 points in February 2024, down 0.9 points (0.7 percent) from its revised January level, as decreases in the price indices for cereals and vegetable oils slightly more than offset increases in those for sugar, meat and dairy products. The index was down 13.8 points (10.5 percent) from its corresponding value one year ago.
