EU milk prices rise in August as production declines

The average EU raw milk price reached 42.22 euro cents/kg in August 2026, up 0.4% from July, according to preliminary European Commission data. However, prices remained 20.6% lower year on year.

Prices increased in nine EU countries. Belgium recorded the strongest monthly rise, up 12.3% to 42.50 euro cents/kg. At the same time, prices fell by 1.8% in France to 43.38 euro cents/kg, and by 1.3% and 1.6% in Hungary and Slovakia, respectively.

The market was supported by lower milk production due to heat and drought. According to AHDB, French milk output was at times 7.5% below year-earlier levels, while production in Germany was around 3% lower.

Dry weather also reduced feed availability and quality. Growth of grass and field crops slowed, while production of protein feed crops, including rapeseed and sunflower seed, declined. Some farmers were forced to begin forage harvesting earlier.

Rabobank expects EU milk production to decline by 1.6% year on year in the fourth quarter of 2026. Lower milk output and reduced dairy product stocks are already supporting prices for skimmed milk powder, cheese and butter, while higher feed costs could further increase producers’ expenses.

Tags: EU, prices, Milk