After rising to record highs of €7,000/t in September, butter prices across Europe fell sharply in the back end of 2017 to finish the year almost exactly where it started just above the €4,000/t mark. The exceptional rise in the price of butter in 2017 was only matched by the speed with which prices fell back to earth since October.

However, dairy farmers will be encouraged to see that butter prices in Europe seem to be to stabilise around €4,000/t following the sharp correction. Spot prices reported this week across Europe range from €3,800/t to highs €4,100/t. Cream supplies in Europe are reported as tighter with cream prices rising slightly over the last week.

This tightness in cream supplies will help butter markets maintain current pricing levels, which at €4,000/t is a healthy level to kick off the new year. On the cheddar side, European prices remain stable about €3,000/t.

For skimmed milk powder (SMP), prices remain on the floor. Spot prices for SMP are reported as lows as €1,300/t this week across Europe.