FAO Dairy Price Index progressed in July

The FAO Dairy Price Index averaged 101.8 points in July, up 3.5 points (3.5%) from June, an FAO report reads.

"In July, quotations for all the dairy products represented in the index rose, moving the overall value 0.7 points (0.7%) above the corresponding month last year and for the first time above pre-pandemic level," FAO analysts comment.

Quotations for milk powders, especially whole milk powder (WMP), rose on account of strong import demand by Asian buyers with some concerns over the eventual size of export availabilities in Oceania in the 2020/21 production season.

"Meanwhile, although they remained below the pre-pandemic levels, quotations for butter and cheese continued to increase, buoyed by robust import demand amid seasonally declining export supplies and steadily rising internal demand in Europe," FAO experts note.

Under the data of the State Statistics Service of Ukraine, milk production in Ukraine in 1H 2020 decreased by 3.6% to 4.6 mln t compared to the corresponding period in 2019.