World prices for some dairy products fell in December last year

According to the Food and Agriculture Organisation of the United Nations (FAO), the dairy price index stood at 130.3 points in December last year, 4.4% lower than in November 2025. On the world market, butter prices have fallen sharply due to seasonally higher cream production in Europe and the accumulation of butter stocks following increased production at the beginning of 2025. Whole milk powder (WMP) prices also declined, reflecting peak seasonal milk production in Oceania and low demand from major importing countries.

While prices for skimmed milk powder (SMP) and cheese declined more moderately, with lower demand for these products and slower export growth contributing to more stable prices.

Despite the recent decline in the FAO Dairy Price Index, in 2025 the index averaged 146.9 points, 13.2% above the 2024 average. This indicates a significant price increase in the first half of 2025. The annual increase in dairy product prices was mainly driven by price increases for cheese, SMP and butter due to strong global demand and limited exportable dairy stocks at the beginning of the year, while the increase in LPM prices was only marginal, reflecting the high volumes of production and the relatively slow growth in demand.

The year-on-year increase in dairy product prices was mainly driven by price increases for cheese, SMP and butter due to strong global demand and limited exportable dairy stocks at the beginning of the year, while the increase in LAM prices was only marginal, reflecting high production volumes and relatively slow demand growth.