World wholesale prices
Updated 09 June 2022
This price series looks at the average wholesale prices of certain dairy products from the EU, Oceania and the US. It aims to provide an overview of global wholesale price movements which can affect prices closer to home.
May tells an almost universal tale of wholesale price drops. All regions saw a month on month drop in prices in all product categories, the exception being US cheddar. Supplies remained tight with reports that demand for most dairy products has cooled slightly in recent weeks due to higher consumer prices and uncertainties around shipping logistics with China.
EU prices dropped in US dollar terms with the region nearing peak milk production. However, volumes still lag behind those of last year. SMP has seen the biggest drop as although production remains steady, some sources report that demand from export markets is currently very quiet. For more detail see our EU wholesale page.
Prices in Oceania saw the largest change, influenced by the lack in demand from China as reflected in May’s GDT events. Most products felt the effects of this reduced demand, with WMP in particular showing the largest decline at 10.5%. Poor pasture conditions, high feed prices, and staff shortages in key milk producing areas continue to have an impact on milk production in the region, consequently, limiting whole milk powder and cheese exports.
US prices avoided the declines seen in Oceania and Europe, with Butter and SMP prices seeing the largest drops of just 1.2% each. Cheddar cheese markets however stood out, bucking the downwards trends with a price increase of 5.5% on the month. Retail demand appeared to be softening, putting some downwards pressure on markets. However, sustained foodservice demand gave some support to butter markets. Additionally, strong export demand gave a boost to cheese prices, particularly from Asian buyers looking to secure supplies.
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