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Dairy Market Report

2014 has been a volatile and difficult year in the Dairy Industry and it is worth while looking back to see the events that have influenced all products.


In July Russia imposed a ban on all dairy imports from the Ukraine which excluded c 50,000 tonnes of cheese, which was equivalent to 14% of Russia’s total cheese imports. Then in August the ban was extended to all EU dairy imports and this caused an immediate downturn of all dairy prices. It was further compounded by the fact that certainly in the UK the August milk production was the highest level seen in 20 years. There was also at that time a slowdown in demand growth from China. So to put it into perspective the statistics below demonstrate the financial impact of this ban to the dairy market:

December 2013 :  Cheddar prices : £3400 – 3500/t and Butter prices £3450 – £3500/t

End August 2014:   Cheddar prices : £3000- £3150/t and Butter prices £2450 – £2600/t

December 2014: Cheddar prices:£2450 – £2650/t and Butter prices £2350 – £2400/t

In the period January 2015 to date the market has firmed again due to the strength of world prices enabling European manufacturers to export products and this has therefore caused local shortages. At the same time EU farmers have been cutting back on production in order to minimise penalties for being over quota before the end of the Dairy Year at the end of March.

However, in April 2015 with the advent of milk quota removals there is an anticipation of prices falling again and buyers have been waiting to cover forward at that time. As usual we at Staple are able to assist in sourcing the best quality product at the best time for our customers. We also welcome any new enquiries and look forward to hearing from you.

Prices are based upon full container loads of industrial 25kg and 20kg blocks of product


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