EU milk production rises 3% while farm-gate prices fall nearly 20%

Milk deliveries to processors in the European Union increased by 3% in January–August 2026 compared with the same period last year. Meanwhile, farm-gate milk prices remain significantly below year-earlier levels. According to the European Commission, the average EU milk price stood at 42.8 euro cents/kg in August, down 19.7% year-on-year and 8.3% below the five-year average. Prices recovered slightly in September, reaching 43.11 euro cents/kg.

The sharpest annual decline in farm-gate milk prices was recorded in Hungary (-29%), followed by Czechia and Lithuania (-26% each), Slovakia (-25%), and the Netherlands and Germany (-24% each). Cyprus was the only EU country where prices remained above year-earlier levels. In August, milk deliveries to processors increased in 19 EU countries, with the strongest growth in Greece (+13.3%), Slovakia (+9.6%) and Denmark (+4%). Meanwhile, deliveries declined in Romania (-13.6%), Estonia (-11.7%) and Ireland (-8.4%).

Higher milk supplies supported growth in the production of major dairy products. During the first eight months of 2026, EU skimmed milk powder output rose by 9%, butter production by 7.7%, cheese by 3.6%, drinking milk by 1.1%, and fermented dairy products by 5.1%. In contrast, whole milk powder production declined by 4.4%, while condensed milk output fell by 3.7%.

EU dairy exports increased by 11.9% in milk-equivalent volume in January–July 2026, while their value declined by 1.5%, despite exceeding €9.47 bln. The largest increases were recorded in exports of butter (+38%), butteroil (+40%), skimmed milk powder (+14%) and cheese (+6%). Meanwhile, whey powder exports decreased by 4%. Additional demand for selected European dairy products came from China, the US, the UK, and markets in Asia and the Middle East.

Dairy commodity prices continued to show mixed trends. In the four weeks to October 18, skimmed milk powder prices rose by 9.1% and whole milk powder by 2.8%, while butter prices declined by 3.8%. Year-on-year, prices for skimmed milk powder and whey powder increased by 54.6% and 52.3%, respectively. Despite stronger activity in certain market segments, rising production and exports have yet to translate into a corresponding recovery in EU farm-gate milk prices.

Tags: EU, Milk, dairy product