FAO Dairy Price Index

The FAO Dairy Price Index averaged 124.2 points in March, up 3.5 points (2.9 percent) from February, marking the second consecutive monthly increase, but remained 11.1 points (8.2 percent) below its value in the corresponding month last year. In March, world cheese prices increased the most, reflecting the steady import demand from Asia, higher internal sales in Western Europe leading to the spring holidays, and seasonally falling production in Oceania. Notwithstanding softer Asian demand, international butter prices increased further in March, mainly due to solid seasonal demand and somewhat tighter European stocks. By contrast, after five months of consecutive increases, international whole milk powder prices dropped as global import demand softened despite seasonally declining production in Oceania. Skim milk powder prices also fell, as markets remained quiet, with lower spot demand.