UK Wholesale Prices

Published 27 August 19

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

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 through the month.

All prices quoted are in £/tonne.

Wholesale markets were quiet in August, with not much volume traded as the summer holiday lull continued from July. Movements in currency influenced prices. The pound fell from late July through to mid-August, giving euro prices more value in sterling terms. Although the pound then rose in the latter half of August, it only recovered part way.

There was a fair bit of movement in the cream price this month. Prices started as low as £1,250/tonne, jumping in the second half of August to be as high as £1,500 by the end, with the main range sitting at £1,300-£1,450. Currency played a part in this shift, and on a thin market the effect may have been exaggerated. Reports also suggested demand started to pick up later in the month as people returned from their holidays. Overall the low price early on left August slightly down compared with July.

As well as the holiday lull, high stocks and low demand continue to dampen activity in the butter markets, and weigh on prices. Currency movements also had some influence on price, and rising cream prices lent some support towards the end of the month. However the overall effect was still a decline in price.

The SMP price rose in August. This has been attributed primarily to currency movements as supply and demand maintained their balance.

The cheddar market continued to remain stable, with our price now unchanged since April. 

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 August. 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.