SMP prices are up 3.9%, with cheese prices up 1% in the last four weeks and whey down 2%.

The Chinese market has seen an 11% increase in imports of SMP, while the US increased exports of whey by 86% in April which has had a knock-on effect on whey prices in Europe.

This week's report has also calculated a double-digit increase in EU SMP exports in Algeria and Egypt by 53% and 65% respectively from January-April this year.

Spot milk prices increased further last week: in IT to 38.5 c/kg (+6.2%) and in NL to 36.8 c/kg (+2.1%): https://t.co/Yu24qLtgMz #MilkMOEU #EU_Agri pic.twitter.com/Q9hKUa9Gnp
— EuroMMO (@EuropeanMMO) June 14, 2018

Butter market

Butter prices are remaining very strong at €589/100kg, which is an 18% increase on last year’s price.

EU butter is the most expensive in world markets, with EU SMP the most competitive, but this does not appear to be having an effect on current prices and demand.

The increases in milk price by Kerry Co-op of 1c/l and Aurivo’s 0.5c/l represent the surge in butter prices and gives farmers a more stable price for their product for the immediate future.

Kerry increases milk price by 1c/l

Butter drives performance at Tipperary co-op

Skimmed milk powder prices boosting dairy markets

The latest report from the European Milk Market Observatory (MMO) highlights a growing demand for SMP products from the EU, with a 2.3% increase in cow’s milk collected compared with 2017.