Global Dairy Market: FAO Dairy Prices and India's Milk Output

The FAO Dairy Price Index averaged 119.2 points in August 2026, up 2.7 points (2.3%) from July and its first increase in four months [1]. It remained 21.7% below its level a year earlier [1].

Skim milk powder prices rose 3.0% and whole milk powder 2.4% in August, as firmer EU quotations outweighed seasonal declines in Oceania [1]. Cheese prices rose 2.7%, while butter was broadly unchanged [1]. In May 2026 the index had fallen 0.5% from April and was 22.4% lower than a year earlier, with butter prices falling in Europe and Oceania, according to a JIRCAS summary of FAO data [2].

India's Department of Animal Husbandry and Dairying (DAHD) describes India as the world's top milk producer [3]. Milk production rose from 146.3 million tonnes in 2014-15 to a record 247.87 million tonnes in 2024-25, an increase of 69.41% [3]. DAHD reports a compound annual growth rate of 5.41% over the decade from 2014-15 to 2024-25 [3].

Per capita milk availability was 485 grams per day in 2024-25, compared with a world average of 394 grams [3]. Buffalo productivity rose from 1,880 kg per animal per year in 2014-15 to 2,365.2 kg in 2024-25 [3].

USDA's New Delhi post forecasts India's fluid milk production at 221.4 million metric tons for calendar year 2026, up from 216.5 million in 2025 and 211.7 million in 2024 [4]. It forecasts India's butter production at 7.44 million metric tons in 2026 [4]. USDA figures use a different definition and calendar-year basis from DAHD's official estimates, so the two series are not directly comparable [3][4].

Price data are from FAO's monthly Food Price Index release; the Dairy Price Index is a trade-weighted index of butter, cheese, skim milk powder and whole milk powder prices (2014-2016=100). The May 2026 movement is taken from a JIRCAS summary of FAO data. India production figures are official DAHD estimates for April-March years in million tonnes. USDA FAS GAIN figures are attache estimates and forecasts on a calendar-year basis; 2026 is a forecast. Global milk production totals from FAO Food Outlook were not verified for this edition and are not included.