EU milk prices rise in October amid declining milk yields

The average farmgate milk price in the European Union increased by 1.28% in October 2026 compared with September, reaching 45.12 euro cents/kg. According to preliminary European Commission data, despite the monthly increase, milk prices remained 13.93% below their October 2025 level. For comparison, the average price of extra-grade milk in Ukraine stood at 35.52 euro cents/kg in October, approximately 21% below the EU average.

Farmgate milk prices increased in 15 EU member states in October. The largest gains were recorded in Belgium, where prices rose by 12.88% to 45.50 euro cents/kg, Lithuania, up 5.78% to 42.48 euro cents, and Denmark, up 4.42% to 47.49 euro cents. In Austria, milk prices increased by 3.46% to 49.30 euro cents, in the Netherlands by 3.41% to 45.50 euro cents, and in Poland by 1.08% to 44.05 euro cents/kg. Meanwhile, prices remained unchanged in seven countries and declined in four, with Slovakia recording the sharpest decrease of 4.22%.

The highest farmgate milk prices in the EU were recorded in Malta at 66.82 euro cents/kg and Cyprus at 65.45 euro cents/kg. The lowest prices were observed in Slovakia and Hungary, at 37.43 and 37.45 euro cents/kg, respectively. On an annual basis, the situation remains largely unfavorable for producers: compared with October 2025, prices declined in 25 EU countries, while Malta was the only country to record an increase, at 4.68%. The largest year-on-year declines were seen in Hungary at 26.5%, the Czech Republic at 24.01%, and Slovakia at 23.88%.

Higher farmgate prices in October were supported by reduced milk supplies amid unfavorable weather conditions and rising production costs. Summer drought and heatwaves deteriorated the quality of feed stored for winter, negatively affecting cow productivity and milk fat and protein content. High costs of energy, fertilizers and feed ingredients are putting additional pressure on the sector. In particular, drought affected the rapeseed harvest and prices. In Germany, the situation is further complicated by the spread of Schmallenberg virus, which can cause temporary reductions in milk yields and reproductive problems in cattle.

According to IFCN estimates, unfavorable weather conditions, declining feed quality and the spread of animal diseases could limit dairy herd productivity in the coming months. However, substantial butter supplies are restricting the potential for further increases in EU farmgate milk prices. High butter inventories in the European market and growing US butter exports are intensifying competition and limiting upward pressure on raw milk prices, despite signs of slowing milk production.

Tags: EU