UK Wholesale Prices

Published 27 November 17

Market views taken for trade occurring between 1 to 27 November. Prices reported are indicative of values achieved over the reporting period for spot trade (excludes contracted prices).

As ever, the following prices represent an indicative average of UK wholesale markets. The “average” prices should be used to track trends while the commentary will contain prices seen at the end of the month.

All prices quoted are in £/tonne.

Despite good availability of milk supplies for this time of year, talk on dairy markets suggests little product is being made available to trade, at least in the UK. Most fresh or stored product has a name on it already, and exchange rates had little impact on prices through November for most products, except SMP.

Cream prices started at around £2,000/tonne before picking up mid-November to around £2,200 - £2,250/tonne due to demand from the continent, mainly Germany and France. Some issues with transport limited the volumes achieving these higher prices however, and prices fell back to around the £2,000/tonne level by the end of the month.

Butter trade remained thin, and while it was reported there were plenty of enquires from buyers, not a great deal of trade was completed. Tight stocks limited the drop in butter prices, despite some pressure from currency fluctuations.

The SMP market remains under pressure as demand remains weak and supplies remain high. In addition, the stronger Euro has put downward pressure on prices in the UK.

Trade in mild cheddar on spot markets was relatively thin in November, with sellers selling primarily to balance stock profiles. Demand for UK sourced cheese remains stable, and stocks were reported as relatively low for this time of year. Although there was some pressure from weak sentiment on the continent - due to falling prices for young cheeses - there was little trade done in the UK for mild cheddar at these lower prices. 

UK Wholesale Table

UK Wholesale Graph

Notes: Prices have been compiled by talking to dairy product sellers, traders and buyers. Panel discussions on market conditions and prices covered trades agreed for the period 1 to 27 November. The published prices will not necessarily match the actual price received by a milk processor as this will depend, amongst other things, on the proportion of product that is sold on the spot market and the proportion sold under longer term contracts and at what price this is done.