UK dairy wholesale prices continue to fall
Prices rallied a bit at the end of the month as availability for some products tightened and export demand remained strong, AHDB said.
However, trade remained limited with buyers and sellers both holding firm on prices while there remains some uncertainty over milk availability in the run-up to the spring flush.
Cream prices started the month low, falling as low as £1,500/tonne in the first few weeks.
Markets firmed nearer the end of the month as milk deliveries slowed and fat availability became relatively scarce, although not sufficiently to recover the value lost in the early part of the month.
The butter market followed a similar pattern, with prices falling by £150-£200/tonne through the early part of the month.
With little stock overhang, and export demand strong due to the competitiveness of European prices, values rose slightly at the end of the month.
The average SMP price fell again in February on spot markets. High stocks continue to overhang the market, keeping buyers in the driving seat.
While the top end of the market was reported to be relatively stable, sellers dropped prices to secure sales for non-specialised product.
Trade remained thin on the market for mild Cheddar as both buyers and sellers are holding off until they have a better view of milk production in the spring.
The average price fell slightly in February, but mainly due to lower spot prices for milk and cream impacting on mild cheeses. ■