Butter prices have continued to rise over the past month thanks to low supplies across the EU and high consumer demand. In May, butter production in the UK fell 7% year on year as dairies prioritised cheese processing over butter due to increased profitability. Prices are now 90.8% higher compared to last year.
This profitability has resulted in a rise in UK cheddar supplies. Prices have stabilised as it coincided with strong domestic demand, although they remain 48.9% higher than this time last year.
The increase in cheese processing in the EU has also resulted in higher whey supplies on the market, which have pushed prices down over the past month.
UK milk prices have also risen with the high demand for milk fat products. UK production of milk increased by 2% year on year in June to 1.2 billion tonnes thanks to good pasture conditions but has now started to decline seasonally.