While the wholesale price of skimmed milk powder, mild and mature cheddar have remained steady since October, the price of unsalted butter has fallen significantly since last month, according to the latest wholesale dairy report by Dairy Co.

Data derived from traders and milk processors between 21 and 24 November showed that the price of unsalted butter fell from £3,500 per tonne (p/t) in October to £3,150 p/t last month. However, it was still more expensive than this time last year (£3,050 p/t). The price of bulk cream had also fallen from October and stood at £1,450 p/t, marginally down from £1,480 this time last year.

Skimmed milk powder held firm at £2,150 p/t, compared to £1,870 p/t in November 2010, while mild cheddar was £2,925 p/t, up from £2,750 p/t this time last year. The wholesale price of mature cheddar was £3,200, up from £3,050 in November 2010.

Dairy Co said that UK bulk butter prices had been following the downward trend seen across the EU, which has been aggravated by the weakness of the euro.

The weakness in the butter market has also had a downward effect on cream prices, said Dairy Co, although build-up production for the Christmas period has given some protection against falling levels.