Unsalted butter, skimmed milk powder (SMP) and bulk cream all dipped in price from July to August, but are still up on this time last year, according to the latest report by DairyCo Datum price update.The wholesale price of unsalted butter fell £100 per tonne (p/t) to £3,500 (2010: £3,300 p/t); while SMP fell from £2,200 p/t to £2,100, (2010: £1,900 p/t).

Bulk cream dipped slipped to £1,580 p/t from £1,600 (2010: £1,420 p/t). Both mild and mature cheddar held steady at £2,975 p/t and £3,200 p/t respectively. Mild cheddar stood at £2,800 p/t this time last year, while mature cheddar was £3,050 p/t. DairyCo said that milk production conditions had remained favourable across most of the UK, leading to a continued increase in year-on-year milk deliveries, following a rise of just under 2% in July.

"UK markets have been particularly quiet since mid-July and this, accompanied by a good volume of milk supplies, has put some downward pressure on most commodity market sectors," said the report.