UK wholesale prices

Updated 25 August 2026

Indicative average prices for butter, skimmed milk powder (SMP) and mild Cheddar cheese on UK wholesale markets. Bulk cream prices are weighted average prices on agreed trades within the reporting period. Product specifications are available to download at the bottom of the page.

Reporting period: Weeks 31-35 (27 July-30 August 2026).

Key points:

• The cream price rose £77/t due to heat-related lower milk volumes
• Butter strengthened £130/t to £3,450/t as most fat sold directly as cream
• Mild cheddar prices moved upwards by £10/t to £3,060 as supplies tighten but less than anticipated
• SMP strengthened, gaining £110/t over the month for an average of £2,470

We have now experienced a fifth heatwave in summer 2026 which has constrained milk volumes sharply in the UK, particularly in the south. Grass growth is non-existent in places and many farmers are having to feed winter stocks. Milk volumes fell to 4.5% below last years at one point with some processors hit harder than others based on regionality. 

Reports of widespread Bluetongue virus through the South West and increasingly the North West of England and Wales is also adding to milk production fears.

These concerns contributed to wholesale prices rising over the 5-week period. Our wholesale prices represent an average price over the 5-weeks.

Bulk cream has continued to pick-up and has been bolstered by fast-rising prices on the continent. At these prices it is still not worth churning to butter and reports of some processors turning old butter to AMF are holding back export prospects. 

Even so average prices picked up a little from the last reporting period moving up from the low 150’s to as high as £1.70/kg at times to mid-£1.60’s later in the period. Prices in Europe are reported to be strengthening quickly.

The average price for the period was £1607/t.

The price of cream meant it continued to be uneconomical to churn butter beyond contracted volumes, tightening markets.  However, stores are still reportedly full (although some is ageing) and availability remains high.  Reports of ageing stock being turned into AMF could help the stock situation in time but stock continues to overhang the market. 

The market remains quiet ahead of September’s return. 

Prices rose £130/t to £3,450/t.

SMP saw good progress with many dryers falling seasonally quiet but also seeing fresh milk diverted to the spot market.  However, demand has been fairly good and prices have begun to push northwards with reports of some buying to store for Q4.

The average price for the period was £2,470 a gain of £110/t.

Again, with more milk diverted to cover fresh dairy production cheese stocks have tightened a little, however less than has been anticipated given falling milk supplies and rising milk prices. 

Stocks are still finely balanced and sellers are not keen to part with cheddar cheaply at this point. 

The average price for the period was £3,060/t, gaining only £10/t although there was significant variance. 

Source: AHDB

Figure 1. UK dairy product wholesale prices

Source: AHDB

Figure 1 shows average UK wholesale prices from mid 2023 to August 2026, measured in £ per tonne.

The published prices will not necessarily match the overall actual price achieved by a milk processor as this will depend, among 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.

The 'average' prices should be used to track trends while the commentary will contain prices seen through the month.

Note: There has been a change in the methodology for determining the bulk cream price from January 2021.

Information on prices and market conditions is gathered through a monthly phone survey of dairy product sellers, traders and buyers.

Panel discussions cover ex-store prices on spot trades agreed within the reporting period and delivered within a maximum of 2 weeks for bulk cream and 6 weeks for butter, SMP or cheese. 

For butter, skimmed milk powder (SMP) and mild Cheddar, prices are indicative of values achieved for spot trades and exclude contracted prices or forward sales.

For bulk cream, a weighted average price will now be reported. This is based on submissions of an average price for agreed spot trades made within the reporting period along with total volumes traded.

Data is entered by panel members via the AHDB online wholesale price portal.

Prices for bulk cream were not weighted by traded volumes prior to January 2021. 

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