World wholesale prices

Updated 13 August 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.

Global wholesale prices were mixed across categories and regions in July. Butter was the only product to record price increases across the board. Powder markets in Oceania weakened month on month and cheddar cheese eased in the US. Demand is reported as the key driver of price changes, with inventories generally reported as tightening.

EU

In July, EU dairy wholesale prices saw mixed movement across categories. Butter recorded another month of strong growth, meanwhile SMP fell back to its lowest price point since Autumn. Inventories for dairy products are generally reported as tight, with demand being the driving force of price changes. Demand for fats is said to be strong but weaker for proteins.

Oceania

Butter prices continued their strong growth, increasing 1.8% compared to the previous month. Domestic demand has held steady with retail butter benefitting from consumers eating at home more often, however export demand has softened. Stocks are reported as tight with seasonally lower milk supplies limiting production. Powders saw some significant declines month on month with SMP down 4.2% and WMP falling 5.3%. Waning demand both domestically and from international markets is noted as the main driver of powder price changes. The price for cheddar cheese remained relatively stable with stocks said to be in good balance with demand. Domestically retail demand for cheese has been strong and exports stable.

US

Cheddar cheese was the only product to see a decline in price in the US for July, down 1.2% compared to the previous month. Production has been reported as steady while demand has eased a little. US butter prices have seen the smallest movement for a number of months (0.7%), although still in a positive direction. Cream volumes are noted to be tightening across the country; however, this seems to have been balance out by steady to lower demand. Powder markets saw some support during the month with the availability of milk reducing and processors prioritising contractual obligations. This is resulting in tightening stocks for both WMP and SMP.

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