Decreasing prices of exchange products despite the shortage of milk: What will happen to the supply prices of raw materials and the recovery of production in the world
Dairy
Published Jul 5, 2022
Tridge summary
Record prices for dairy products in the world have most likely reached their peak and are beginning to fall under the pressure of reduced consumer demand. This is evidenced by the main indices and reports of trade exchanges.
Original content
Thus, in May 2022, the average value of the FAO Dairy Price Index was 141.6 points (Chart 1), which is 5.1 points (3.5%) lower than the April indicator. This is the first drop after eight months of growth, and yet this indicator is 20.5 points (16.9%) higher than in the corresponding period last year. Butter prices also fell significantly due to a drop in import demand combined with some growth in supplies from Oceania countries and limited sales in European domestic markets. Meanwhile, despite lower global import demand, cheese prices fell slightly as retail volumes remain strong and restaurant demand remains strong ahead of the Northern Hemisphere summer holidays. Chart 1. Dynamics of the price index for dairy products, % Source: FAO. The GDT dairy price index has been falling for the 6th session in a row, starting on April 5 (with the exception of previous trades on June 7). The latest results are minus 1.3%. The fall is largely due to the passive participation in the bidding ...
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