UK wholesale prices

Updated 24 January 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.

Prices ease post-Christmas but signs of some buoyancy still

Weeks 52-4 (23 December 2024 to 26 January 2025)

Commodity prices and demand are entering the traditional post-Christmas slump, with volumes down after the peak festive period.   Growing milk supplies, both domestically and on the continent have eased pressure on commodity prices for fats and cheese.  However, the last week or so has brought some recovery meaning the slump could be short-lived.

Bulk cream prices fell Christmas week and the first couple of weeks of January but pushed back up in the latter part of the period and remain notably high for the time of year.  Overall, the average bulk cream prices eased almost £400/t month on month (or 13%), but reports of the final week ending in the 270s with even some prices reported as high as £3000/t. 

Butter prices softened off this month, falling by £290/t (or 4%).  Most commentators reported a similar trend to cream, with lower prices post-Christmas and seeing some resurgence over the past week. Stocks were reported to still be tight and buyers still concentrating on covering short-term needs rather than planning ahead with expectations of price falls coming into the Spring flush.  The last week was seeing more buyers returning to the market. 

SMP prices were reported to be stable month on month with no pressure on inventories. There was only minimal change in the average price compared to last months publication, easing by only £10/t. There was some discussion of potential disruption from the Foot and mouth outbreak in Germany with potential buyers in Asian markets turning away from European markets as result.  Little impact was seen on pricing, however,

Cheese markets followed a similar pattern of dip and recover throughout the reporting period.  The market was reported to be fairly quiet. The average price for mild Cheddar declined a further £90/tonne month on month but saw a spike in the last week of the period with a strengthening of interest. Prices were expected to be weaker given the current generous state of milk flows but, in the end, did not move much on average. 

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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