UK wholesale prices

Updated 24 October 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.

Weeks 40-43 (29 September to 26 October 2025)

October continued, and deepened, the downturn in market prices we saw last month with butter, cream and cheddar prices slumping. Sellers were said to be finding the market conditions extremely difficult with thin demand and an excess of (often expensively made) product to dispense with. Milk supplies domestically and globally are booming which is putting huge pressure on markets. 

Butter prices recorded the most dramatic change. The average butter price lost £860/t in October, building on the £500 lost last month.  Similarly to last month the price range on quotes was substantial, showing the significance of downwards pricing movements from the start to end of the reporting period with some very low quotes reported towards the end of the period.  The market has been afflicted by over-supply, with European milk production reported to be roaring back to life in Germany and France and butter supplies following suit. As the year-end approaches many are motivated to shed stock being unwilling to utilise expensive storage over the winter. The only glints of light were an uptick in retail demand noted in Germany due to lower prices and some competitiveness returning to the global market where the price difference to Oceania has been eliminated.

Bulk cream prices followed suit with average pricing sitting £600/t lower in October compared to September. Top end pricing at the start of the period was around £2.25/kg but the very latest prices are more like £1.80/kg with some reports of even less. The average for the month was £1.99/kg.

Mild cheddar prices caught butter’s cold, with another substantial drop of £310/t month on month to bring down to £3110/t. The range in pricing for cheddar increased compared to last month. Sellers need to sell to clear stock build ups but are stuck between a rock and a hard place. Cheese has been produced with expensive milk, and the bottom has fallen out of the market with plenty of cheese around ahead of year-end and weak demand.  Sellers are also reluctant to sell too cheap to avoid alienating existing commercial arrangements. Despite this, many producers were chasing sales in what was described as a very thin market. The global cheese market is increasingly competitive adding to the pressure.

SMP prices saw the least movement but did ease £90/t month on month falling throughout the month. As with the other commodities there is too much milk and only so much space to process it. 

The published prices will not necessarily match the overall actual price achieved by a milk processor as this will depend, among 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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