FAO Dairy Price Index

The FAO Dairy Price Index averaged 136.3 points in September, an increase of 5.0 points (3.8 percent) from August and 24.3 points (21.7 percent) higher than its corresponding value a year ago. The rise in the index was driven by higher prices across all dairy products, with whole milk powder prices rising the most, spurred by strong import demand in Asia, despite seasonally higher milk production in Oceania. Skim milk powder prices rose due to limited export availabilities amid tight milk supplies and robust domestic purchases in Western Europe. Meanwhile, world butter prices increased for the eleventh consecutive month, underpinned by solid import and domestic demand, tight inventories and limited milk supplies in Western Europe. World cheese prices also increased, reflecting strong global import demand and tight exportable availabilities in Western Europe, where milk production is seasonally lower.