June 2026 Updates Spot Milk and Bulk Cream

 

 

The extreme heat has certainly knocked back milk production on farm in the last week, with reports in the southwest of some cows not being able to survive the stress. Hot milk also having been a problem as well with cooling equipment on farm undoubtedly tested to the max. These temperatures, while great for ice cream sales, pull back demand especially in the liquid market. While there are no reports of distressed milk and the real low prices that come with it at spring peak time, there still seems to be plenty of volume about compared with a couple weeks ago (when cheesemakers were being offer 37ppl to part with a load) which lends to the fact that demand in the liquid market has tailed off somewhat. This has taken the edge off the top end of our spot milk price range from the previous week by a few pence. Within the wider range most reports coming in have narrowed the range for the bulk of trades down to between 28ppl and 30ppl delivered. 

 

 

Prices for 25tBSC are down again but the hit has come in more at the top end of our range than the lower end with the best traded prices reported in the last week reaching no higher than £1.40kg ex works. The low end of the range dropping slightly to £1.33kg ex works. Within this range around £1.35kg to £1.36kg ex works seems to be the focal point or average for most trades. Exports into Ireland are put £1.33kg and Eastern Europe £1.25kg as an ex equivalent return however, mainland Europe (Germany) is not an option currently as domestic cream prices equate to an equivalent range of £1.16kg to £1.21kg ex works. 

 

Butter markets are reported as being quiet with prices still around £3,200/t level for unsalted. Reports indicate that stock levels across Europe are on the rise, which is of little surprise given the current lower prices for fresh bulk cream. Imported butter, Irish in particular, continues to be priced at competitive levels running to discounts of up to £100/t at £3,100/t. On the other hand SMP has seen a bit of a recovery last week, which only really started from midweek onwards with stronger demand coming in from both traders and end users, in particular offering higher prices for prompt delivery of product. Subsequently, prices have moved up £100/t to around the £2,200/t level. 

 

 

 

 

The negativity has continued this week with 25tBSC prices pulling further down with our domestic price range running this week from £1.34kg up to £1.45kg ex works, very limited volumes traded at the top end of this range we would suggest. Export returns remain week with prices into Ireland £1.33kg to £1.36kg but in mainland Europe where milk and cream supplies remain stronger, prices run weaker, especially out of Eastern Europe and Germany where equivalent returns from delivered export would run as low as £1.11kg to £1.16kg ex works. Butter prices remain under pressure £3,150/t to £3,200/t with SMP prices also back £2,080/t to £2,120/t with no shortage of product as seasonal milk volumes across Europe remain strong maintaining powder production. 

 

 

In terms of spot milk there feels from reports like there is a little more available on the market, which could be more to do with some having breakdowns in the last week. Prices in the high 30ppl’s seemed to have dried up for now with the bulk of prices quoted within a range of 30ppl to 35ppl delivered. Some distressed volumes (those having no choice but to sell) could be fetching lower prices which holds the bottom of our range unchanged from the week before. 

 

 

 

 

25tBSC prices have come under some downward pressure this week, driven by lower butter prices and much weaker prices for domestic cream on the continent. No sooner than reporting last week that we could be seeing the back of prices being in the £1.30’s these levels are coming back into play at the low end of our trading range. As this last week has progressed so prices have moved weaker, from starting the week where £1.46kg to £1.49kg ex works was achievable the bulk of reports for the week have ranged from £1.42kg to £1.45kg ex works. Pressure has built from mid-week onwards which has allowed prices as low as £1.36kg ex to be reported by this weekend. Little cream will be going for export as domestic prices on the continent are reported to have taken a battering with EU domestic prices (particularly Germany) reported as low as £1.16kg to £1.18kg ex works. UK cream sellers should expect more pressure put on prices this coming week by all accounts. Meantime, while wholesale cheese prices remain unchanged, competitive butter prices, especially Irish supplies, has put further downward pressure on butter prices now quoted around £3,200/t. SMP values are not able to sidestep the market negativity either with prices now reported around £2,250/t. The market in general has a feel of a reset before buyers enter the again, hopefully before the summer break. 

 

 

The same can’t be said for spot milk prices where prices this week have taken a major step upwards with surplus or distressed milk has dried up. Some cheesemakers report they are now being approached by traders looking for milk with offers well up in the high 30ppl’s to tempt volumes to be released. As UK Milk production continues to trend lower, those processors looking to top up supplies will be feeling the price boot is starting to belong with those who have the supply. Indeed, with cream values where they are currently, we are told it is getting to a point where it is just as easy and more profitable to sell the milk on rather than split it. At the low end of the range there may still be some having to sell surplus (possibly at weekends) however, that price will now have moved up to around 25ppl while at the top end we are reliably informed 37ppl delivered is being achieved. Most prices though running through a tighter range of 30ppl to 34ppl delivered. 

 

 

 

 

Prices for 25tBSC have continued to rise whereby the £1.30’s are now left behind, with the low end of our trading range starting at £1.40kg ex works. The better prices setting the ceiling of our range at £1.49kg ex works. The bulk of reports have created a narrower range circa £1.42kg to £1.45kg ex works. Export opportunities for UK cream have had limited demand with domestic cream prices on the continent pulling back in the last week to circa £1.28kg to £1.33kg ex works. Prices for bulk butter have eased £3,300/t to £3,350/t with prices for SMP also weaker around £2,450/t. 

 

 

As UK Milk production continues to trend below last year, milk volumes are starting to tighten with little to no distressed volumes being reported as coming to market. Therefore, spot milk prices, for now at least, have left the teen levels with most reports ranging prices around 25ppl to 26ppl delivered. Our main trading range is a little wider with the low end starting on 21ppl delivered rising to 26.5ppl at the top end. With the bulk of prices pushing closer to the top end of our range means positive price pressure is building. If the production trend continues to run below last year and bar any major breakdown issues, spot milk prices should continue their ascent towards ex-farm price levels (30ppl to 35ppl) as we head towards mid-summer.