UK wholesale prices

Updated 25 July 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.

Poor availability of fats and weaker demand impact wholesale markets

Weeks 25-29 (w/b 17 June – w/b 15 July)

Movements were mixed across product categories in July as the summer holiday period kept demand quiet during the month. Lower milk supplies and fat content of milk has been reported to have restricted the availability of stocks, providing support for some products and keeping others in balance.

Bulk cream marched on ahead this month, gaining over £230/t. Prices progressed over the course of the month, with early quotes around £2,400 but later quotes at around £2,600. It was noted that loads set for export had a higher premium. Availability was reported as the main driver with milk supplies running lower and fat content also said to be lowering. 

Butter prices remained stable for the most part, edging up just £20/t month on month, with some weekly fluctuations in line with exchange rates. Stocks are reported to be tightening further with little cream available to the market for processing, however demand has been very quiet due to the European holiday period, keeping the market in balance. There were some concerns made around long term coverage.

SMP markets were generally reported as “dead”, but some commentators thought the UK had seen more support than the continent. Average prices were higher at the start of the period and then weakened, losing the gains made in the previous month. It was noted that movement in the GDT index also had a part to play with a large decline recorded in the middle of the reporting period.

Mild cheddar markets were noted to be firm, with average prices increasing £100/t. Stocks are reported to be tightening following lower milk supplies and higher milk prices. As with other products, demand was reported as subdued due to the holiday period. Again, some concerns were raised about coverage for later in the year.

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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