UK wholesale prices

Updated 25 March 2024

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.

Weeks 08 – 11 (w/b 19 February – w/b 11 March)

March seems to have brought about a ‘Mexican standoff’ in the markets. It is reported that most short-term needs are covered with buyers now hoping to secure product at lower pricing as milk production seasonally picks up. However, sellers seem unwilling to negotiate prices down until they are more confident in what future supplies look like.

Bulk cream was the only commodity to record an uplift in pricing in March. It was reported that there is good availability of cream but high butter prices at the end of February and the beginning of March provided support to the market with some loads quoted at £2,010/t. As demand eased later in the month so did prices but overall sentiment is stable.

The average Butter price for the period saw no month on month change, however it was not a flat market. Some loads at the start of the reporting period were quoted at over £5,000/t due to a sharp increase in short term demand, but prices eased off in the latter part of the month, stabilising the market. Stocks are reported to be in line with demand.

SMP markets continued to weaken during the month. There was little range reported in pricing with the average moving down £100/t. The GDT index fell at both events that occurred during the reporting period and has set the undertone for the market with little to no buying interest.

The market for mild cheddar was reported as difficult in March with very little demand. Prices were relatively steady but easing within a tight range. There were some reports that stocks have begun building following tightness in recent months as buyers take a step back ahead of the flush.

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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