Dairy Outlook is a service of FAO’s Markets
and Trade
The FAO Dairy
Price Index averaged 146.4 points in July, down 3.8 points (2.5 percent)
from June, but still 29.7 points (25.4 percent) above its value in July of last year. International quotations for skim milk powder registered the steepest decline, followed by those of butter and whole milk powder, principally reflecting lacklustre market
activities in Europe due to the summer holidays. Furthermore, most buyers were well covered for their immediate needs, which, in tandem with weak demand from China and high dairy prices, led to declines in the demand for spot supplies, weighing on international
quotations. Meanwhile, world cheese prices remained stable, as high internal sales in European tourist destinations compensated for weaker global import demand. Despite an overall weak trading activity, tight global supplies sustained global dairy prices at
elevated levels.