UK dairy commodity prices have been following recent EU and global trends with an upward move in prices.

Market analysts at ADHB report that UK butter prices have risen from £3,750/t at 30 April to £4,800/t by the end of May.

Low butterfat stocks, growing product demand and lower milk production levels than initially forecast have altered buying patterns by key customers.

Cream prices have also strengthened in May, rising from £1,730 to £2,000/t by the end of the month.

The value of cream to liquid milk processors has risen by 1.31p/l during May and now stands at 11.45p/l. In May 2016, cream prices were only worth 4.92p/l to a processor.

Skim milk powder prices have increased from £1,450/t to £1,650/t. Market analysts indicate that the actual milk price equivalent (AMPE) for the UK now stands at 31p/l, before transport and processing costs.

With UK dairy commodity prices strengthening and the value of sterling weakening, there is growing pressure for processors to increase NI milk prices. Prices here have held steady so far in 2017, but there has been some downward price moves in Britain for June.

Dutch prices

This week’s Dutch dairy auction saw further increases for butter and SMP prices. Butter rose by €300/t to €5,370/t with SMP rising by €80/t to €1,970/t. WMP prices recorded no change this week and remain on €2,950/t.