International prices of dairy products less volatile

The South African Milk Processors’ Organisation (SAMPRO) has released its report on the international prices of dairy products for October 2020. The report states that movements of the Food and Agricultural Organization (FAO) of the United Nations dairy price index in 2018, 2019 and thus far in 2020, have been less volatile than in the previous years. According to SAMPRO, this indicates that the supply and demand for dairy products in the international market are balanced.

The FAO dairy price index in September 2020 was 2,6% higher compared to September 2019. However, it was 1,5% lower than in January 2020. In September 2020, the dairy price index was higher than the price indices of meat, grains, and sugar. However, it was lower than the price index of oils.

The considerable difference between the prices of whole milk powder, skimmed milk powder, cheddar cheese and butter, which occurred in the past, disappeared due to a reduction in the prices of butter and cheddar cheese and an increase in the price of skimmed milk powder.

The prices of dairy products such as whole milk powder, skimmed milk powder, cheddar cheese and butter for delivery in March 2021 are 2,6 to 10,8% lower than the prices for delivery in November 2020. For the full report click here. – Press release, SAMPRO