UK wholesale prices

Updated 25 November 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.

Mixed movements in UK wholesale prices

Weeks 43-46 (21 Oct to 17 Nov 2024)

There were weekly price fluctuations across all products during the November reporting period with industry sentiment mixed. Firmness in the market seems to have been driven primarily by actions on the continent with EU milk supply still weak and seasonal demand strong. However, there has also been pressure on prices as it was noted some buyers and sellers have been at an impasse. While there is news of growing milk supplies, inventory and availability is weak, particularly on fats.

Average bulk cream prices eased just under £40 month on month. At the end of October prices had fallen to below £3,000/tonne, lifting marginally in the early part of November. But in the final week of the period prices quoted had jumped to over £3,100/tonne. Commentators highlighted the premium between loads sold for export compared to domestic trading.

Butter prices gained £130 with the range tightening compared to previous months. Following a similar pattern to bulk cream, butter prices eased at the start of the period but have since gained strength with multiple quotes over £6,750/tonne. Strong demand from both retail and export are keeping prices supported as product stocks continue to be tight and, despite improved milk volumes in the UK, processing has remained limited.

SMP has been relatively stable with a marginal movement of just £10/tonne this month. Although some higher prices were seen, product availability was generally reported as good on both the domestic and global markets. Demand was primarily for export with some buyers benefiting from end of year discounting on older stock.

Cheese markets were more subdued with all contributors reporting the period as quiet. The average price for mild Cheddar declined £110/tonne month on month with buyers showing caution on higher pricing. Purchases are said to be on a need only basis with little forward interest. Cheese stocks continue to be tight and with milk prices rising sellers are less willing to negotiate discounts.

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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