Global dairy prices rise for the first time in four months

Global dairy prices rose in August 2026 for the first time in four months. The FAO Dairy Price Index increased by 2.3% from July to 119.2 points. However, the index remained 21.7% below its level in August last year.

The increase was mainly driven by higher prices for milk powders and cheese. Skim milk powder prices rose by 3%, while whole milk powder prices increased by 2.4%. Higher quotations in the EU more than offset seasonal price declines in Oceania.

The European market was supported by tighter milk supplies, exacerbated by hot and dry weather in several key producing regions. Steady import demand added further upward pressure, particularly on skim milk powder prices.

Global cheese prices increased by 2.7% in August, extending the recovery that began in July. Higher EU prices amid limited milk supplies more than offset lower prices in Oceania, where export availability increased.

Butter prices remained broadly unchanged from July. Higher prices in Europe, reflecting tighter milkfat supplies, were offset by lower quotations in Oceania amid a seasonal increase in production.

Tags: prices, Milk, butter, Cheese, global market, whole milk