EU dairy exports rise nearly 12%, but production surplus persists

European Union dairy exports increased by 11.88% in August 2026 compared with the same period last year. According to DCA Market Intelligence, the increase amounted to 272 mln kg of milk equivalent. Positive momentum continued for the second consecutive month, following an 8.46% increase in July, equivalent to an additional 225 mln kg of milk equivalent. However, stronger exports have not yet been sufficient to fully absorb the surplus milk supply in the European market.

Higher exports provided additional sales opportunities for European producers of cheese, butter, milk powder and other dairy ingredients. However, the volumes of milk entering processing remain high relative to domestic consumption and export demand. As a result, an imbalance persists between production and the market’s capacity to absorb finished dairy products.

Meanwhile, export performance varied significantly across individual dairy product categories. In particular, EU whey exports declined by 10.3% year-on-year in August, partially offsetting the positive impact of stronger shipments of other dairy products. Demand for whey and its processed products depends on developments in the international market for food ingredients and protein products, as well as competition among suppliers.

The persistent milk surplus creates additional risks for European dairy processors. When demand in domestic and international markets is insufficient, inventories of finished products may increase, putting pressure on prices and raising storage costs. For dairy farmers, this situation could affect farmgate milk prices and purchasing policies among dairy processors.

Despite stronger shipments in July and August, current export volumes remain insufficient to fully balance the market. At the same time, declining whey exports highlight uneven demand across individual dairy product categories.

Tags: EU, dairy products