FAO Dairy Price index  declined

The FAO Dairy Price Index averaged 148.3 points in September 2025, marking its third consecutive monthly decline, down 2.6 percent from August while remaining nearly 9 percent above its level a year earlier. All sub-indices eased, with butter falling by 7.0 percent, skim milk powder by 4.3 percent, and whole milk powder by 3.1 percent, while cheese quotations eased only slightly.

The relatively sharp drop in butter prices reflected a seasonal increase in cream availability as demand for ice-cream in the Northern Hemisphere waned, alongside higher production expectations in New Zealand as the spring flush advances. Nevertheless, despite this fall, butter prices remained 6.3 percent above the 2024 average.

Milk powder quotations decreased mainly on softer demand from key importers and firmer export competition. By contrast, cheese prices declined only marginally, as a modest easing in the European Union amid steady output and softer export interest was partly offset by firmer quotations in Oceania, where smaller early-season supplies and stronger demand from Asian buyers supported New Zealand prices.

Source : Dairynews7x7 Oct 6th 2025