UK dairy commodity prices have recorded price increases for butter, cream and cheddar during February as market demand grows. However, skim milk powder continues to face price pressure.
Cream prices rose by £300/t from £1,550/t in January to £1,850/t in February.
The increased price is worth an additional 1.75p/l to the processor.
Cream is now worth 10.75p/l and the current trend has reversed the downward price trend for cream in the latter stages of 2017.
UK butter prices increased significantly from £3,660/t in January to £4,300/t in February, following improved market demand on GDT and Dutch auctions.
Cheddar prices also recorded a price increase of £100/t from January with the February price now standing at £2,925/t. SMP prices fell by £36/t to £1,130/t during the corresponding period.
The move in commodity prices has led dairy analysts to forecast an actual milk price equivalent (AMPE) for February of 26.9p/l.
