Dairy | FAO Dairy Price Index

The FAO Dairy Price Index averaged 132.1 points in January, up 3.1 points (2.4 percent) from December 2021, marking the fifth consecutive monthly increase, and placing the index 20.8 points (18.7 percent) above its value in the corresponding month last year.

In January, price quotations for dairy products rose, with the steepest increases in skim milk powder and butter.

The January increase was underpinned by a tightening in global markets, reflecting a reduction in export availabilities, especially from Western Europe, where a reported reduction in milk deliveries in some large milk-producing countries and lower stock levels supported prices.

Expectations for milk production in Oceania to remain below its average levels in the months ahead added to the tightening in global dairy markets. In addition, milk processing and transportation delays due to COVID-19-related labour shortages further contributed to higher dairy prices.

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