September 2026 Updates Spot Milk and Bulk Cream

 

 

It is still very much a period of mixed fortunes when it comes to dealing in the spot milk market, the situation continuing to be exacerbated by annual maintenance shutdowns. The range starting at the bottom with those being forced to sell, dips another 2ppl to 31ppl with some in the north even reporting the struggle to actually find a home for their milk surplus to requirements. At the top end, those having to purchase an odd load at short notice, to maintain service levels or contractual commitments with customers are having to pay 50ppl or just above. This has widened our range this week to 20ppl although, the consensus seems to be most trades are in a tighter range of 44ppl to 47ppl delivered. 

 

 

Prices for fresh bulk cream are also painting a picture of mixed fortune with some reporting prices under pressure this last week to as low as £1.60kg ex works, others reporting stability with prices achieved as high as £1.76kg ex works. However, it is stressed these higher prices are only being achieved on the odd load with prices very dependent on the volumes to be sold. Domestic prices on the continent are reported to be stable holding around £1.61kg ex equivalent. With butter production rising across Europe overall sentiment is reported to be weakening across Europe however, UK prices for now are holding steady and still put around £3,570/t. SMP prices are also holding steady, with buyers remaining cautious by taking small volume cover only, UK prices still in the region of £2,725/t. 

 

 

 

 

Planned maintenance shutdowns and some breakdowns (unplanned maintenance) with milk volumes on farms starting to lift, have pushed more milk onto the spot market. having received no reports of any milk bought at 50ppl or above, pressure has surfaced at the top end of our range. Again, lower prices will be experienced in the north but without question milk in the south has been purchased in the last week in the mid to high 30ppl’s delivered. The possibility that prices could move lower for those having to sell surplus milk in the coming weeks has certainly strengthened, especially while significant capacity remains off stream on shutdown. 

 

 

Prices for fresh bulk cream are also coming under pressure which has taken the low end of our range down a penny per kg. The bulk of reported trades are falling in the region of £1.72kg to £1.75kg ex works with the ability to achieve higher prices limited to smaller quantities of the single load or two. Domestic prices on the continent are reported to be around the £1.61kg ex works equivalent and therefore, little incentive to chase export at this time. Butter prices are starting to feel the effects of weaker sentiment, partly given last week’s GDT results as well as rising butter production in Europe. UK butter prices are put around £3,570/t. Buyers said to also be turning a little more cautious now on SMP given the price increases in recent months and the prospects of recovering future milk production. Prices put around £2,700/t to £2,750/t. 

 

 

 

 

Unfortunately, not great news this week as far as our range is concerned. The north/south divide on spot milk prices that have been building this summer due to the dry weather and now planned maintenance shutdowns (essentially shorting capacity) some projects scheduled to be running over a number of weeks has brought price pressure on those having to sell out unexpected or unplanned volumes, especially if not based in the southwest of the country. That pressure has manifested into milk prices that have traded circa 33ppl delivered. As shocking as this price might sound it is roughly the current value return of splitting milk into cream and SMC or SMP. The bulk of reported trades are still mid to high 40ppl’s although further south prices continue to run as high as 52ppl delivered. 

 

 

Prices for fresh bulk cream have moved higher with the best prices reported to have reached £1.78kg ex works last week. There are still reports of prices below £1.70kg ex although the bulk of reports are between 1.74kg and £1.77kg ex works. Continental domestic creams prices have softened again with prices put around £1.59kg ex works our equivalent. Butter prices are broadly unchanged from the previous week. Demand for SMP is reported to be holding despite buyers being unsuccessful in their attempt to force prices lower with prices holding stable at the same levels as the previous week. 

 

 

 

 

Spot milk prices are relatively unchanged with just a slight firming at the low end of our range. The bulk of reported trades to be in the narrower range of 45ppl to 48ppl. The top end of our range on more limited volume with with trades more linked to the south of the country for those needing to top up volume holds on 52ppl. 

 

 

Prices for fresh bulk cream have eased a little higher with most reporting prices as moving into the £1.70’s per kg to secure supply. A few trades still reported in the high £1.60’s which is reflected in the low end of our range while the best prices have come in at £1.75kg ex works. Domestic prices on the continent have eased slightly to around £1.61kg ex works UK equivalent. Butter prices have edged up with both salted and unsalted in range of £3,600/t to £3,700/t are are espected to move fimer into Q4 as seasonal demand increases, while demand for SMP continues to rise with UK supplied prices now as high as £2,750/t.