Report

Dairy prices fall amid a fragile market

The UK wholesale dairy market remains fragile, with concern over prices as it approaches the end of the quota year, according to the latest DairyCo Datum report.

However, bakery manufacturers will appreciate the drop in the price of butter, skimmed milk powder and bulk cream. The wholesale price of butter fell £100 per tonne (p/t) to £2,800 p/t between January and February this year down 3.4% on the price last year (£3,500 p/t).

Skimmed milk powder dropped less, at only £50 p/t down, to £2,000 p/t over the same period down 2.4% on the price in February last year. Meanwhile, the wholesale price of bulk cream also fell £50 p/t to £1,230 down 4.1% of last year’s figures. Mild Cheddar remained level at £2,925 p/t as did mature cheddar at £3,200 p/t.

Looking at butter, prices have followed falls in Europe, with comments that adequate supply is available on the Continent, said the report. "With butter prices falling, cream has also seen further price easing, with values now almost £300 p/t down on values at the end of 2011," according to DairyCo. "Powder prices have also fallen, although not to the same extent, following the easing in European prices."