FAO Dairy Price Index

The FAO Dairy Price Index averaged 130.6 points in August, up 2.8 points (2.2 percent) from July and standing 16.3 points (14.2 percent) above its corresponding value a year ago. International price quotations for all dairy products increased in August, with those of whole milk powder rising the most due to a surge in import demand for spot supplies and tight inventories in major producing regions. International butter and skim milk powder prices increased, with butter quotations reaching an all-time high, underpinned by increased demand for near- and long-term deliveries and some uncertainty over the adequacy of milk supplies in Western Europe, despite drops in Oceania price quotations on account of softer demand and expectations for milk supplies to increase seasonally. Meanwhile, world cheese prices increased, driven by limited inventories and lighter cheese production in Europe, coupled with increased global import demand.