In May 2021, the Global Dairy Mintec Category Index (MCI) broke its consecutive eleven-month upward trend, reaching an average price of USD 4,090/MT. The dairy MCI slightly descended by USD 54 versus the average value of April 2021, down 1.3%. However, the MCI remains USD 1,060/MT above the same period last year, a rise of 35%.
Despite the slight decline in the dairy MCI price, demand seems to be solid and global milk collections have largely continued along with the same upward course for the past several months.
International butter prices declined in May 2021, down 7.4% month-on-month (m-o-m), mainly driven by low butter prices in New Zealand due to a fall in export sales to Asia, and lower demand from the retail sector.
In contrast, m-o-m cheese prices remained flat in May 2021, with an increase in cheese production in the US and limited demand for spot supplies.
Both skimmed milk powder (SMP) and whole milk powder (WMP) prices rose in May 2021, supported by an abrupt decline in European production and purchases in New Zealand as traders and companies rushed to secure supplies, as they expect tight supplies towards the end of the New Zealand milk season.