Market report: Dairy prices remain firm

Dairy commodity prices remained unchanged between September and October, apart from bulk cream which increased by £30/t to £1500/t, according to latest Dairyco figures.

Butter prices stayed on a par with last year at £3250/t, while prices for all other commodities were up on the same period 12 months ago. Skimmed milk powder was priced at £1950/t and mild and mature cheddar at £2750/t and £3050/t, respectively.

Higher than normal milk output had allowed more to be made into butter, although supplies remained tight due to attractive bulk cream prices. “The weakness of sterling against the euro has helped bulk cream prices which are reported to be fluctuating in a wide range from week to week,” DairyCo said.

Cheddar markets were relatively static, although there were reports of more overseas interest in UK products such as cheddar curd, used to make processed cheese.

UK milk production is close to its annual low point, although supplies have continued to run well ahead of 2009 levels. Cumulative deliveries for the first half of the quota year are estimated up by 3.6%.