UK wholesale prices

Updated 20 December 2024

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.

UK wholesale prices weaken at year end

Weeks 47-51 (18 Nov to 22 Dec 2024)

Growing milk supplies, both domestically and on the continent, combined with better coverage have eased pressure on commodity prices for fats through December.

Bulk cream prices in the first half of the reporting period were stronger than the end. Quotes from the end of November were around £3,100/tonne but by mid-December this had dropped to around £2,500/tonne. Overall, the average bulk cream price eased just over £40 month on month, with higher volume deals made earlier in the reporting period.

Butter prices saw much greater variation this period with quotes ranging by over £1,000. Most commentators reported a similar trend to cream, with higher prices at the end of November and falling into December. Stocks were reported to still be tight, and more seasonal trading being done on packaged rather than bulk product.

SMP prices were reported to be stable month on month. There was no change in the average price compared to last months publication, with the price range narrowing. Improved demand for proteins was said to be keeping firmness in the market with reasonable stock levels.

Cheese markets were noted to be on a steady decline throughout the reporting period. The average price for mild Cheddar declined a further £110/tonne month on month. There was some end of year discounting reported however the market was quiet. Sellers and buyers appear to be at an impasse on prices with buyers showing caution on higher pricing, but sellers not willing to negotiate lower due to stong milk prices.

The published prices will not necessarily match the overall actual price achieved 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. 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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