UK wholesale prices

Updated 23 October 2026

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.

Reporting period: Weeks 40-44 (28 September-31 October 2026).

Key points:

• The cream price fell £180/t to £1,528 as demand weakened and milk supply fears waned
• Butter fell £240/t to £3,300/t as volume of stocks weighed heavily on the market
• Mild cheddar prices dropped £40/t to £3,290, influenced by the weakness of fats
• SMP performed strongly, gaining £200/t over the month for an average of £2,930/t

Although milk supplies remain back on a year ago, with October to date down by 3.2%, this varied regionally with reports from the South West indicating greater constriction on supplies than those whose milk pools further north (which  have been less affected by both drought and bluetongue virus). 

However, sentiment is certainly less concerned about milk volumes than we saw last month, and markets have responded negatively with the impact of high stocks and high global supplies coming back into the driving seat. 

This does cast doubt on the sustainability of some of the Autumn milk price rises that have been previously announced depending on the product mix for individual processors. 

Bulk cream has come under more pressure over the past month, falling sharply over the course of the month from the £1.70’s down to the mid-high £1.30’s.  Reports indicate that continental cream prices are weaker still offering little export outlet.  Despite lower milk supplies at a national level, fat content in the milk has been strong as grass growth picked up and some milk pools less exposed to drought saw supplies recovering. 

Cream demand has been weak due to little demand to make butter.

The average price for the period was £1,528t.

Butter stocks are still very high here and abroad which is overhanging the market.  Buyers are covered for the quarter and in no hurry to return to a market that they see as bearish.   

Weak retail demand for spreadable butter has not been outweighed by good consumer block demand and prices have lost the gains that were made last month as the market has failed to find a floor. 

Reports of Irish butter are beneath UK pricing and discount butter from the US (trading £1,000/t below European prices) continue to distort the global picture. 

High demand for protein is driving strong production of butter globally as a co-product of SMP which is squeezing butter prices.

Prices fell £240/t to £3,300/t.

SMP continued to push up in line with growing consumer demand for protein globally and supplies are reported to be fairly tight with production fairly low.

Demand is reported to be good, with some product reformulation away from some of the more expensive whey derivatives aiding demand for SMP. Feed market demand is also reported to be strong. 

Rising energy costs will also drive costs of production, disproportionately for the drying sector. 

The average price for the period was £2,930 a gain of £200/t.

Cheddar prices were steady. Many cheese producers need to push up milk prices to secure milk supplies in the past quarter, however, market movements have not supported this and the latest price moves have continued to disappoint.

Although the UK market is reportedly well-balanced, the mild cheddar price has come back a bit with a bit of pressure from Ireland. As with butter, buyers are waiting to see how the market develops before committing.

The market has been relatively busy with the exit of DairyGold from the UK market driving some activity and export activity continuing to be positive.

The concern is that the price of butter will fall further and drag cheddar with it. The US continue to distort the global market with cheap supplies traded internationally which could keep a cap on prices.

The average price for the period was £3,290/t, falling £40/t.

Source: AHDB

Figure 1. UK dairy product wholesale prices

Source: AHDB

Figure 1 shows average UK wholesale prices from late 2023 to late 2026, measured in £ per tonne.

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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