UK wholesale prices

Updated 25 March 2025

Indicative average prices for butter, skimmed milk powder (SMP) and mild Cheddar cheese on UK wholesale markets. Bulk cream prices are weighted average prices on agreed trades within the reporting period. Product specifications are available to download at the bottom of the page.

Butter is aflutter with price recovery ahead of the flush

Weeks 9-12 (24 February 2025 to 23 March 2025)

Overall commodity prices bounced a little in March with some significant movements reported within the month, particularly for butter. Most commentators felt the market to be relatively quiet with some bated breath ahead of the flush. Whilst there is plenty of milk around, stocks are depleted, and many buyers are having to come back to the market ahead of when they might like.

Bulk cream was flat again month on month, easing just £2/t on average. There was said to be a spike in demand mid-month, but things settled again thereafter.  Lack of milk supplies on the continent are keeping prices afloat, but not all buyers are active, as some wait to see what the flush brings. 

Butter prices saw the largest change month on month, rallying £150/t. Stocks are still reported as low despite improving milk production. The Irish have been notably absent from the market as stocks have been dispatched Westerly to reach the US ahead of planned tariffs.  Strong demand from the continent due to weak milk supplies and promotional activity on butter in German retail is keeping demand buoyant.  Some reports indicating prices easing in the last week of the reporting period.

Mild cheddar markets also grew in strength a little.  Availability is tight as curd prices are good, constraining cheese production. Prices increased to around £4020/t with the rage of prices reported quite narrow.

SMP remained a problem child compared to the resplendence of butter. Prices eased by a scant £10/t to £2,010.  Unfavourable exchange rates against the Euro have constrained export demand.  Some breakdowns were reported.  It is yet to be seen how much capacity will be available to cope with excess spring milk with changes in ownership of key dryers which will provide opportunities for those with the capacity to capitalise on it. 

The published prices will not necessarily match the overall actual price achieved by a milk processor as this will depend, amongst other things, on the proportion of product that is sold on the spot market and the proportion sold under longer term contracts and at what price this is done. The “average” prices should be used to track trends while the commentary will contain prices seen through the month.

Note there has been a change in the methodology for determining the bulk cream price from January 2021.

Information on prices and market conditions is gathered through a monthly phone survey of dairy product sellers, traders and buyers. Panel discussions cover ex-store prices on spot trades agreed within the reporting period and delivered within a maximum of 2 weeks for bulk cream and 6 weeks for butter, SMP or cheese. 

For butter, skimmed milk powder (SMP) and mild Cheddar, prices are indicative of values achieved for spot trades and exclude contracted prices or forward sales.

For bulk cream, a weighted average price will now be reported. This is based on submissions of an average price for agreed spot trades made within the reporting period along with total volumes traded. Data is entered by panel members via the AHDB online wholesale price portal.

Prices for bulk cream were not weighted by traded volumes prior to January 2021. 

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