SMP and butter manufacture declined sharply in August, with EU27 balance sheets remaining tight. The 5.9% YOY SMP fall mostly reflected weaker manufacture in Ireland and Germany while butter declined across the board except in Italy. WMP output fell for the sixth consecutive month, down 8.5% YOY in August.

With favourable stream returns due to high WPC prices, cheese manufacture continued to increase by 0.7% YOY in August, albeit at a slower rate relative to prior months. Most of the YOY growth in cheese during August reflected increased output in Germany and Denmark which more than offset declines in other key producers led by the Netherlands and France.