The FAO dairy price index saw a third consecutive monthly decline and setting the index value 44.3 points or 19.6% below its level one year ago. Quotations for all dairy products represented in the index fell in May with steepest drops registered in butter and cheese. The reason for fall in butter is due to huge seasonal supplies in Europe. The reason for decline in cheese is due to weak import demands and late season export supplies from Oceania. Renewed economic activities in China fuelled the demand for SMP and WMP amid lower prices thus stabilizing their prices even under the circumstances of export availabilities and huge inventories.
