UK wholesale prices

Updated 23 August 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.

Post holiday demand lifts UK wholesale prices

Weeks 30-33 (w/b 22 July – w/b 12 Aug)

Many commentators have described the market as being ‘on fire’ this month, especially in the last 10 days. Although seasonal demand pick up is anticipated after the summer holiday period, the size of the uplift was reported to have taken some by surprise. This has supported product pricing across the board, alongside a lack of available supplies. Please note prices are an average over a four week reporting period.

The bulk cream market is very tight on volume with low milk supply and lower fat content impacting availability. Average prices increased £175 month on month, however there were large differences in prices between the start and end of the reporting period, with some loads in the latest week reportedly going for around £3/kg.

Due to the limited availability of cream on the market, butter supplies are also running very tight with decreasing production. After stabilising last month, average butter prices have jumped significantly in August, up £420/t. As with cream, butter prices saw the range in prices markedly increase. Quotes from early in the reporting period were around £5,800 but grew to around £6,400 in the last week. Although most trading was to cover short term needs, concerns were noted about Q4 coverage.

SMP prices were reported as volatile during the period with changing exchange rates. Average prices have seen minimal movement month on month, up just £10/t. The market is still reported as very quiet, and production limited due to some site maintenance closures.

Mild Cheddar prices continued to see modest growth, up £90/t, with the range in quotes remaining quite narrow. Demand was reported as mixed, with some reports of trade increasing but others noting a steadier marketplace. Similarly to butter, there are concerns around Q4 coverage, with buyers purchasing short term.

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. 

While AHDB seeks to ensure that the information contained on this webpage is accurate at the time of publication, no warranty is given in respect of the information and data provided. You are responsible for how you use the information. To the maximum extent permitted by law, AHDB accepts no liability for loss, damage or injury howsoever caused or suffered (including that caused by negligence) directly or indirectly in relation to the information or data provided in this publication.

All intellectual property rights in the information and data on this webpage belong to or are licensed by AHDB. You are authorised to use such information for your internal business purposes only and you must not provide this information to any other third parties, including further publication of the information, or for commercial gain in any way whatsoever without the prior written permission of AHDB for each third party disclosure, publication or commercial arrangement. For more information, please see our Terms of Use and Privacy Notice or contact the Director of Corporate Affairs at info@ahdb.org.uk  © Agriculture and Horticulture Development Board. All rights reserved.