March 2026 Updates: Spot Milk and Bulk Cream Market

 

 

We were expecting prices for 25t BSC to weaken further last week however, not the speed of price collapse that has seen the gains of the last 5 to 6 weeks totally wiped out by the end of the week. Indeed, the situation had deteriorated so much that by Friday we were receiving reports that some traders weren’t even answering their phones. Never a good picture building when sellers have to chase buyers. Prices at the beginning of last week started on a lower footing around £1.50kg to £1.55kg ex works and by mid-week, as prices in the EU came under pressure (circa £1.40 ex equivalent as their domestic price) prices here were fell to £1.30kg ex works and by Friday £1.25 kg ex works. Quotes into next week are already running lower at £1.15kg ex works. We’d put the bulk of prices traded last week in the £1.54kg to £1.30kg ex works range with those sellers that sealed deals earlier in the week obviously experiencing the better prices. That said, we won’t go into the detail of the attempts being made by some buyers to renege on deals made earlier in the week as the week progressed. Cream for export to the continent, we are told is sub £1.05kg ex by the time costs have been taken out. While moving forward another worry building, that being one of actually capacity, which is certainly starting to raise issues for raw milk. Bulk butter prices are lower with quotes coming in at around £3,500/t with Irish and EU apparently discounting by as much as a further £200/t. SMP is holding up for now at circa £2,450/t. Next week is the run up to Easter weekend with April stating on Wednesday, it’s not looking like it is going to be a great start to Q2 on the spot markets. 

 

 

Spot milk prices are down a tad with pressure both on price and spare processing capacity definitely growing both due to seasonal production, and to some extend the slowly emerging new entity coming into the market (milk producers, mostly large ones for now) looking to sell their surplus milk to avoid penalties. Factory issues are still throwing a little distressed milk onto the market however, as milk volumes start to seasonally grow and absorb what spare capacity there is, the actual volumes trading on the market will become more restricted, as processors have to deal with milk production rising from their own suppliers. AD plants and on farm dumping now very much just around the corner, if not already happening in some cases. 

 

 

 

 

25t BSC prices weakened as last week progressed and are likely to weaken some more into this coming week, as butter prices continue to come under pressure. Best prices for cream reached as high as £1.75kg ex works level early last week before slipping to £1.58kg ex works by Friday, thus pulling out an overall wide range of 17p per kg. Most reports for the week fell in the range of £1.60kg and £1.65kg ex works. Prices on the continent are also reported to be well back from their domestice prices acheiving highs of £1.96kg before dropping to £1.59kg ex works equivalent, with prices achieved for export put around £1.61 kg ex equivalent. Bulk butter prices are without doubt weakening and currently put around £3,820/t down from highs of above £3,900/t with prospects that in the short term prices will come under more pressure as both milk supplies and stocks grow in the coming months. SMP on the other hand continues to track upwards with current prices reported around £2,430/t and is now running at a multi-year high. 

 

 

Spot milk prices are little changed from the previous week as some milk processors continue to experience difficulties with breakdowns. Such distressed milk is having to be hauled long distances to find a home with prices as low as 15ppl delivered. On the having to buy to top up prices still not able to break the current 22ppl glass ceiling. 

 

 

 

 

Cream prices have taken a step up from the previous week, certainly at the low end of our range with majority of our price reports for 25tBSC falling between £1.67kg and £1.70kg ex works. At the low end £1.65kg ex works is the lowest reported, while at the top end the best is £1.73kg ex works. This is now turning into some recovery, considering price levels of £1kg ex at the start of the year and given the current timing, not to mention milk volumes holding up well above last year. Returns from the EU are put at around £1.62kg to £1.65kg ex work equivalent. 

 

 

Not quite the same can be said for spot milk as for cream, milk volumes remain firm and with a few dairies running some quick maintenance shutdowns before spring peak supply in the last week but, at the sametime a few factories tripping over as well, some distressed milk has found its way back onto the market, with prices reported to be running as low as 15ppl delivered. The bulk of volume traded we put in the 20ppl to 21ppl range with best prices still coming in no higher than 22ppl delivered, that is for those having to buy the odd load. 

 

One milestone to report though—for the first time we have had reports of some milk producers who supply milk buyers under Non-Exclusive supply contracts, able to sell their surplus B litres this month to another milk purchaser. While the prices will remain undisclosed, they are however, better than the alternative if the producers were to supply the surplus milk to their primary purchaser through the existing balancing scheme. We understand the deals have been done with the purchaser’s knowledge and blessing, as they simply don’t need the extra milk currently. In this turbulent time of over milk supply here is the proof that 3 separate parties have been able to agree a solution to deal with surplus unwanted litres. It maybe early doors, small volumes and tiny number of producers invloved. However, this has to be progress and proof that such schemes, while a bitter pill to take at this time when it comes to the actual price level, they can work.  

 

What are the alternatives? Well, there's one that has and will contiue to play out for a while as some milk buyers, especially those with little or no volume management control, have been left with no alternative other than to give a number of their milk suppliers notice to terminate their milk supply contracts in 12mths time. Between now and then this could turn to be a drastic action for both parties involved, starting with the producer's turn first, right now, the prospect of no home for their milk and 12mths to search out a new buyer to which the clock can tick down quickly, and then possibly the milk buyers turn at a later date, especially if milk supplies were to turn tighter around 12mths time. 

 

 

 

 

Aside from all the chaos on global trade being created from the conflict in the Middle East, cream prices have continued to strengthen as the week has progressed. Prices for 25tBSC started out the first half the week trading in the range of £1.40kg to £1.50kg ex works, with our premium sellers yesterday trading a range anything from £1.58kg up to £1.67kg ex works. This has widened the overall trading range considerably for the week.  

 

From our reports and intel most trading through the week feels like it has been around or just the £1.45kg to £1.50kg ex works level. It real boils down to the time of week the trades were being conducted, the deeper or later in the week it appears to be the higher the return. Meantime, we are informed that prices on the continent continue to strengthen, with reports of prices being achieved up to £1.87kg delivered into Central and Eastern Europe. 

 

 

Spot milk prices have held in a stable range in what feels like a quieter week, albeit prices generally have edged up within the range with most reporting said to be around the 20ppl delivered level. Therefore, our range holds unchanged from the previous week.