UK wholesale prices

Updated 25 September 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.

UK wholesale prices continue to soar

Weeks 34-38 (19 Aug until 22 September 2024)

The fats market is continuing to break records and is even reported as rising too quickly for some, who cannot logistically organise the supplies to cater for the demand.  We are entering unprecedented times. Demand is said to be firm and is supported by high prices on the continent keeping export demand high. 

The bulk cream market remains very tight on volume with prices in Europe also being very high.  More storage capacity for cream on the continent is meaning some cream is diverted in that direction.  Prices have risen to an average of £3.15/kg, an increase of £0.45/kg or 16% since last month.  This is the highest that cream prices have ever been. Prices started the period at around £2.90/kg but built through the month to £3.30 for some. 

Due to the incredibly high price of cream, butter supplies are also running very tight with decreasing production as many are electing to sell the cream rather than go to the expense of churning butter. Average butter prices have jumped very significantly for the second month in a row, hitting heights of £7,000/t in some cases.  The average for the five-week reporting period was slightly less heady but still settling at £6,730/t which is a record-breaking price. As with cream, butter prices saw the range in prices markedly increase through the month. With Christmas pressures beginning to emerge, traders will need to ensure their needs for both cream AND butter are covered. 

SMP prices were quieter than fats but are also beginning to see some upward pressures on the back of rising casein prices. There was quite a spread of prices reported over the month, with SMP reported as selling for as high as £2,300/t in some quarters; however, the average came out at £2,150/t. Prices built over the course of the period due to low stocks. The UK is reported as currently trading at a premium. 

Mild Cheddar prices continued to push on, up £290/t which is not yet up to the heady levels seen in 2022 when mild cheddar hit £4,880/t. There was, however, quite a range in quotes with some selling as high as £4,360/t.  Concerns about milk supplies and weaker valorisation for cheese may constrain supplies going forwards offering further support for prices.  

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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