The FAO Intergovernmental Group (IGG) on Meat and Dairy Products represents a forum for intergovernmental consultation and exchange on trends in production, consumption, trade and prices of meat and dairy products, including regular appraisal of the global market situation and short term outlook. The Group considers changes in national policies and examines their international effects referring to the current and prospective market situation. The group meets once in each two years. The IGG on Meat was established by the Committee on Commodity Problems (CCP) at its Forty-fifth Session in 1970. Dairy products were included under the mandate of the Group in 2002. Membership in the Group is open to all Member Nations and Associate Members of FAO, including Observers from international organizations and institutions. Nearly all importing and exporting countries of meat and dairy products are Members of the IGG. SLIDE 2
Prices rise in the face of limited availability on the international market. International prices of dairy products began to strengthen in mid-2012, reversing the steady decline that had characterized the previous 12 months. The change in trend resulted from a tightening of supplies to the world market. Availabilities are anticipated to be finely balanced until at least the end of the year. The FAO international dairy products price index (2002–2004=100) stabilized at 173 during June and July but had risen to 194 by October. Prices strengthened for all the products that constitute the index, especially skimmed milk powder (SMP) which registered an increase of $562 per ton, or 20 percent, after its mid-year low. In the same period, whole milk powder (WMP) prices also rose, by $425 per ton or 15 percent, as did quotations for butter, which were up $400 per ton or 14 percent, and cheddar cheese, which increased by $175 per ton or 5 percent. Over the past three years, the dairy index has been around a value of 200, meaning prices for dairy...
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