World wholesale prices

Updated 17 October 2024

This price series looks at the average wholesale prices of certain dairy products from the EU, Oceania and the US. It aims to provide an overview of global wholesale price movements which can affect prices closer to home.

Average global wholesale prices increased for all dairy products in September. EU and US prices were up across the board, while Oceania’s butter price continued to decline, creating a more significant price differential between the EU and Southern Hemisphere.

EU

In September, EU dairy wholesale prices increased across all categories. Particularly strong butter prices were driven upwards by tight inventories. SMP and WMP also rose significantly, supported by limited milk supplies and stable demand.

Oceania

Milk deliveries in Oceania have seen a seasonal uplift. Butter prices have continued to fall since the summer highs, decreasing by 3% month on month. Export demand has weakened, whilst strong milk volumes have increased butter availability. Domestic demand for butter and cheese has been mixed as consumers continue to feel financial pressures. While retail sales have benefitted, foodservice demand remains low. Export demand for cheese is strengthening. The price of cheddar cheese increased by 4% in September and is the highest recorded since July last year.

SMP and WMP prices picked up by 8% and 3% respectively. Industry sources report a recent increase in domestic demand and interest for exports. Processors have been using more milk for powder production, leading to higher availability.

US

US dairy prices increased across all products in September, particularly for cheese (12%+). Production levels have been mixed across the US and limited availability and plant downtime has affected stocks in some regions. Demand has remained stable but efforts to build stocks for the festive period are underway, although high costs may be a deterrent.

Powder markets remain elevated as stocks are limited. Though components have remained strong, overall output has been steady. Some whole milk product has been redirected to fulfil other dairy product manufacturing needs. Steady to light domestic and export demand was reported.
The US butter price saw a 1% increase in price month on month. While domestic demand for butter has been steady, some future contracts have been picking up and manufacturers begin to build stocks for the festive period. Industry sources report stronger export demand.

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