World wholesale prices

Updated 23 January 2024

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.

Average global wholesale prices decreased for most dairy products in December. By region, all EU products eased in price, as did most products in the US and Oceania.

EU

The USDA source recorded marginal month-on-month decreases in price for WMP and SMP of 0.5% and 0.8%, respectively, while butter saw a more significant 4.7% decline. This runs contrary to reports from the EU which recorded price increases for all products with the exception of butter. The difference may be accounted for by a difference between reporting weeks for the month of December.

Oceania

Milk delivery estimates are significantly above 2023 volumes. Butter prices declined by 5.4%, with reports describing a decline in export demand alongside strong cream supplies. Domestic demand has reportedly been mixed. Cheddar cheese prices decreased by 3.7% in December. Demand for cheese has weakened, as have export sales, while cheese availability has been sufficient to meet the current demand.

The SMP price decreased by 1.2%, as industry commentary suggests both muted end of year demand and available supplies for purchasing. Meanwhile, WMP increased by 3.1% with less production and stronger demand reported, though recent observations show demand softening.

US

Average US dairy prices declined in all products except SMP. Cheese prices fell by 8.3%, as demand was subdued. Production levels varied across the US.

Milk has been available for powder production, but output remained steady. SMP prices rose by 1.3%, though demand has been quiet. Meanwhile, WMP decreased by 1.7%, also reporting lacklustre demand.

The US butter price experienced a 4.6% decrease in price month on month. Domestic demand for butter has been mixed but generally steady. Sufficient cream has been available for manufacturing and butter inventories are plentiful.

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