International prices of all milk products that constitute the index increased in December, underpinned by strong global import demand, mostly induced by concerns over the adverse impacts of drier and warmer weather conditions on Oceania’s milk production.
High internal demand and lagging production of some milk products in Western Europe also provided support.
However, for 2020 as a whole, the FAO Dairy Price Index averaged 101.8 points, down 1.0 point (1.0 percent) from 2019.
Among the different milk products, butter prices registered the sharpest fall, followed by whole milk powder, while prices of skim milk powder and cheese increased.
