EU Wholesale Prices

Published 10 September 19

The EU wholesale markets were relatively mixed during August. Further price reductions were seen in butter, WMP and whey markets. Meanwhile, SMP prices increased marginally. Cheese prices on average remained static.

Butter prices declined during August, with the holiday season limiting buying activity and most buyers reportedly covered for short-term needs. Competitive pricing, and a preference for European product by international buyers has led to strong export interest. Speculation around stock levels, and the lower price level, has drummed up buying interest, with reports of renewed contracting activity for the latter half of next year.

Skimmed milk powder (SMP) markets moved up in August. Buyers are reportedly looking to lock in future supplies, and so attention was focused on contracting for Q3 and into next year. Export interest was helped due to low seasonal production in Oceania.

Meanwhile, whole milk powder (WMP) markets were reported as calm. Internal demand was reported as steady, while export interest was limited. Production was limited by raw milk going into other, more profitable dairy products.

Whey prices fell again August. Falling demand from China, due to the ongoing outbreak of African Swine fever, has resulted in a glut of product on the market. Prices have fallen 20% since the start of the year.

Cheese production in the EU was reportedly in good balance, with steady export interest. Overall, cheese markets remained flat. Cheddar prices declined by over €50/tonne on the month. However, this was compensated by an equivalent rise in Emmental prices.  Edam and Gouda prices remained steady on the month.

EU Wholesale Table

Please see text above and notes below.

EU_wholesale _graph

Please note that prices can vary markedly within each market sector: the prices above are intended to give a guide to trends in price changes, but the absolute values experienced in the market place may differ from those shown.