UK wholesale prices

Updated 23 May 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.

Bulk cream prices fall as milk volumes soar

Weeks 18-21 (28 April 2025 to 25 May 2025)

Overall, the market was noted to be reasonably stable with some downward pressure in spite of soaring milk volumes. Most commentators noted that product demand had seen little change month on month as peak milk production was reached.

Bulk cream prices took the largest hit month on month, with the average price down £87/t in May. Weekly movements were reported as consistently lower as soaring milk production has led to an abundance of cream availability. Alongside this, it was said that demand has been patchy as processing capacity struggled to keep up with volumes.

Average Butter prices continued to hold firm, making a marginal gain of £10/t month on month with the range in prices tightening significantly during this reporting period. Despite the strength recorded in milk volumes, butter stocks remain tight with demand generally reported as stable month on month. It was noted that the closure of a large facility for maintenance put additional pressure on processing capacity.

SMP continued to ease, with the average price edging down £10/t on average in May. As with butter, the range in prices was very narrow with a little weekly fluctuation driven by demand. Overall, the market was said to have seen little change month on month.

Mild cheddar markets this month came under pressure at the end of reporting period, driving the average price lower month on month by £70/t.  Availability was reported as good and comfortable while was demand still subdued but steady. However, it was noted that many traders are watching European milk production closely as continental cheese supply is tight.

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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