Weekly dairy market update (9-13 November)

Monday, 16 November 2020

By Patty Clayton

Dairy markets prices remained stable on average in the first full week of the lockdown. Following some downward movements in the previous week, markets were described as firm this week.

Foodservice remains the most affected segment of the market, but with schools and universities remaining open, and some parts of the UK coming out of lockdown, overall demand has held up reasonably well.

Spot milk 28/29ppl

More milk was available through the week due to maintenance shutdowns and to lower demand from the foodservice sector. The time of the year means there is ample processing capacity to deal with the volumes, although this has meant prices have moved down slightly from the 30ppl achieved last week.

Bulk cream £1,330 - £1,360 /tonne

Despite good availability, as sales into restaurants and pubs have dropped off, bulk cream prices firmed slightly from the previous week. This was due to higher demand on the continent as lockdowns eased in some areas and manufacturers started holiday preparations.

Butter £2,900 - £3,000 /tonne

Demand for bulk butter continues to be weak, which has put some pressure on pricing. The uncertainty around future trade with the EU from January, and the additional cost of trade, have reduced interest in UK sourced butter. On the domestic market, strong retail sales continue to help offset lost foodservice sales.

Patty Clayton

Lead Analyst - Dairy

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