UK wholesale prices

Updated 25 February 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 slip as trade waits for flush

Weeks 5-8 (27 January 2025 to 23 February 2025)

Overall commodity prices edged downwards in February, although it is noted that prices remain historically high. Most commentators felt there was still coverage to fill for Q2 but that across product categories both buyers and sellers were not overly active on trade this month. It is believed there is a ‘wait and see’ approach being taken on milk volumes and therefore product stocks.

Bulk cream reported marginal movement month on month, easing just £4/t on average. Prices were reported to have steadily moved lower throughout the period, starting at around £2.70/kg and ending around £2.50/kg.

Butter prices saw the largest change month on month, down £260. Fats markets were said to have eased off more significantly in the latter half of the reporting period, although it was mentioned that some site issues and plant maintenance may have fed into this. Stocks are still reported as low despite improving milk production.

SMP and Mild cheddar markets were both reported as stable and quiet. Prices slipped month on month by £70/t and £30/t respectively. Price ranges for both products were very narrow.

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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