The South African Milk Processors’ Organisation (Sampro) has published its report on the international prices of dairy products for April 2021.
According to the report, movements of the Food and Agricultural Organisation (FAO) of the United Nations in 2018, 2019, 2020, and the first three months of 2021, were less volatile than in previous years. This is an indication that the supply and demand for dairy products in the international market are fairly balanced.
In March 2021, the FAO dairy price index was higher than the price indices of meat and sugar, but lower than the price indices of cereals and vegetable oils.
From January 2020 to May 2020, the FAO dairy price index decreased by 9,1% from 103,8 to 94,4. From May 2020 to December 2020, it increased by 15,3% to 108,8, being 4,8% higher than in January 2020.
From December 2020 to March 2021, the price index increased by 7,9% from 108,8 to 117,4.
In March 2021 the dairy price index was 15,7% higher than in March 2020, 11,2% higher than in March 2019, and 5,5% higher than in March 2018. The dairy price index was 24,2% lower than the highest dairy price index recorded in March of the years 2010 to 2021, namely 154,8 in March 2014.
The considerable difference between the prices of whole milk powder, skimmed milk powder, cheddar cheese and butter, which was seen in the past, disappeared at the beginning of the second half of 2019. However, from the last quarter of 2020, the price of butter increased much more than that of the other three dairy products.
The price of whole milk powder achieved at the Global Trade Auction on 6 April 2021, for delivery in September 2021, is 1% higher than the price for delivery in May 2021. The price of skimmed milk powder for delivery in September 2021, is the same as the price for delivery in May 2021. The price of butter for delivery in September 2021, is 0,3% lower than the price for delivery in May 2021. No information regarding the price of cheddar cheese was recorded.
For the full report click here. – Press release, Sampro