World wholesale prices

Updated 19 September 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 increased for all dairy products in August, particularly for SMP and WMP. Prices were varied between regions. US and EU prices were up across the board, while Oceania butter and cheese weakened month on month. This means there is a significant differential between EU and Southern Hemisphere butter prices, which now look very expensive.

EU

In August, EU dairy wholesale prices increased across all categories. Particularly strong butter prices, up by 10.7% month on month, were driven by both tight inventories and robust demand. The positive shift in powder and cream prices has been supported by limited milk supplies and stable demand.

Oceania

Previously strong butter prices took a turn in August, plummeting by 10.2% compared to the previous month. Consumers have continued to act on financial pressures, and while retail sales have benefitted, foodservice demand is low. Industry sources also report a recent decline in export demand. Meanwhile, outputs begin to see a seasonal uplift. SMP prices remained in line with July values, having decreased since June. However, WMP experienced significant growth of 6.7% following low demand earlier in the year, with powder demand now coming from other regions. Following the seasonal trough, processors can begin to use more milk for powder production. The price of cheddar cheese declined marginally (-0.1%), as an increase in production was reported, though demand relatively stable.

US

Dairy prices remain in a strong position in August for the US. Powder markets remain strong as stocks are limited and domestic demand has increased, coinciding with the start of the new school year. Cheddar prices are strong, with industry reports describing seasonally tight supplies, though demand has been steady. Butter prices decline marginally (-0.2%) however, stocks of cream remain tight.

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