The FAO Dairy Price Index averaged 116.1 points in December, an increase of 1.9 points (1.6 percent) compared to November, marking the third consecutive monthly rise and standing 22.2 points (16.1 percent) below its value a year ago.

The December increase in the index was driven by higher quotations for butter, whole milk powder (WMP), and cheese.

Regarding butter and cheese, international prices increased, mainly supported by strong domestic sales in Western Europe ahead of the holiday season, contrasting with a continued market supply despite the seasonal rise in milk deliveries in the region.

Additionally, increased import demand from the Near East also supported cheese price quotations. Meanwhile, strong global import demand led to an increase in international prices for WMP, while European markets remained largely inactive due to the holidays.

In contrast, skim milk prices decreased slightly due to limited demand. Overall, in 2023, the FAO Dairy Price Index averaged 118.8 points, a decrease of 23.6 points (16.6 percent) below the 2022 annual average, driven by weak import demand, especially for spot supplies, amid ample stocks in importing countries, reflecting a decline in worldwide dairy prices.

The FAO Meat Price Index recorded an average of 110.4 points in December, a decrease of 1.1 points (1.0 percent) compared to November, standing 2.0 points (1.8 percent) below its value a year ago.

In December, international prices for pork declined, supported by persistent weak import demand from Asia, despite increased seasonal domestic sales in some exporting countries. Meanwhile, prices for beef and poultry fell, reflecting less active buying interest in Asia coupled with ample exportable supplies in major producing regions.

On the other hand, sheep meat prices rebounded after two consecutive months of decline due to stronger demand ahead of the holidays and reduced slaughter deliveries in Oceania as recent rains eased the pressure to offload animals for slaughter.

Overall, in 2023, the FAO Meat Price Index averaged 114.6 points, a decrease of 4.2 points (3.5 percent) compared to 2022, attributed to increased export availability from major exporting regions, amid reduced import demand from key meat-importing countries, reflecting decreases in annual average values for beef, poultry, and sheep meat, partially offset by an increase in average prices for pork.