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Downward trend in dairy product continues

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Staff Writer | January 11, 2018
December saw a continuation of the downward trend in dairy product prices, both on physical and futures markets, AHDB says.
Prices for butter
Dairy   Prices for butter dropped
Prices for butter on physical markets dropped in December as retail buying and forward contracting slowed. Skim milk powder (SMP) prices continue to drop from supply pressures.

The average value of milk (EU AMPE) therefore fell by 6% compared to the previous month.

The average value of milk on the futures market (FMPE) fell by a similar amount (7%). Contract prices for Apr-18 butter and SMP fell in the first half of December, then remained relatively stable through the holiday period.

The FMP indicator for December remained negative but similar to the previous month, suggesting an expectation of further drops in product pricing going into the spring.