British dairy commodity markets fell between June and July, but were still well above last year’s prices, according to DairyCo Datum.
With the exception of Cheddar, commodities such as cream, butter and skimmed milk powder, all eased month on month. Butter dropped from £3350/t to £3300/t, while bulk cream fell by £120/t to £1430/t. Skimmed milk powder eased by £50/t to £1950/t, while mild and mature cheddar remained unchanged at £2800/t and £3050/t, respectively.
“With an increase of 4.3% in UK milk deliveries in June, following an uplift of 3.2% in May, milk output may now have turned a corner, after declining almost continuously for the past six years,” the report says. “However, the recent hot and often dry weather has accelerated the decline from peak output, so it is difficult to say whether this situation will continue into the autumn.
“There are strong possibilities that butter and cream prices will firm as demand revives after the holiday period, but powder markets seem likely to remain less attractive.”