World wholesale prices
Updated 13 October 2021
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.
All product prices rose on the month in September, across all three regions. This was partly due to milk supply, as the northern hemisphere headed towards seasonal lows, while the new southern hemisphere season hasn’t yet hit its stride.
Seasonally low milk production kept supplies tight in Europe, supporting prices across the board. The end of the summer holiday season gave demand a bit of a lift, particularly for butter. Although export demand for powders is relatively quiet – or hard to meet due to shipping costs – internal demand was good. For more detail see the EU wholesale prices page.
Milk production in Australia and New Zealand reportedly had a slow start to the season, and sentiment was indicative of tighter supplies in September. Lower volumes helped raise the Global Dairy Trade price indexes at the September events, further supporting markets. Butter prices were additionally lifted by strong demand from both exports and domestic retail. Powder buyers appeared encouraged to buy sooner rather than later. With higher manufacturer’s prices and lower GDT offerings, this pushed up powder prices. Cheddar cheese also benefitted from an uplift in price, particularly at the start of the month, but overall the market appears to be relatively balanced.
Prices also rose in the US despite high stock levels. Demand for butter was reported to be strong. Staff shortages and transport issues had some impact on butter production, but overall stocks are still building in advance of the holiday season. WMP was quiet with limited production, with prices starting to edge up in the latter half of the month as baking season demand began appearing. Tight spot inventories supported SMP prices. Finally, cheese markets were mixed, starting relatively steady, then having a bit of a dip at the top end before ending the month on an increase.
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