The FAO Dairy Price Index averaged 120.9 points, up 1.5 points (1.2 percent) in March, but remained 27.8 points (18.7 percent) below its level a year earlier. This marked the first increase since July 2025, driven primarily by higher quotations for skim milk powder (SMP), butter, and whole milk powder (WMP), while lower international cheese prices limited the overall rise. SMP and WMP prices extended the upward trend observed since January, supported by firm global import demand and a seasonal decline in milk supplies in Oceania as the production cycle moved past its peak.  International butter prices also edged up, with stronger gains in Oceania reflecting tightening milk fat availability, while increases in the European Union remained moderate due to comfortable cream supplies amid improving seasonal milk flows. By contrast, cheese prices declined further in the European Union, where increased milk availability, higher cheese output, and subdued export demand weighed on quotations, while prices in Oceania firmed, supported by tighter supply conditions and relatively strong demand.