Prices of UK dairy products continue to fall as high worldwide production levels drive down milk prices.

In New Zealand, production is up 4% year on year for the first half of the season (June-November), while in the US, levels were up 3.2%. In total, UK liquid milk production for the 12 months to December 2014 was up 2% year on year.

UK butter prices are also plummeting, in response to falling demand towards the end of 2014, despite UK production being down 12% year on year in December and 3.5% for 2014 as a whole.

High production levels and weak demand sent WMP prices falling throughout 2014 and the price remains low year on year, with demand still not picking up. SMP prices also remain low.

UK egg prices are falling month on month as a result of boosted supply levels, but prices remain up year on year due to the effects of tight supplies at the end of 2014 and increased consumer demand.

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