Milk prices in the EU fall as farmers’ costs rise

The European Union is experiencing a decline in raw milk prices amid overproduction and falling demand. In April 2026, the average price was 42.91 euro cents per kg, which is almost 19% less than a year ago. This is stated in a message from the “Association of Ukrainian Milk Producers”.

In the European Union, the price of raw milk continues to decline against the backdrop of high production volumes and falling prices for exchange-traded dairy products. Additional pressure on the market is created by the increase in farmers’ costs due to the consequences of the war in the Middle East.

According to the European Commission, in April 2026, the average price of raw milk in the EU was 42.91 euro cents per kilogram, which is 0.37% less than in March. In annual terms, milk has become cheaper by almost 19% compared to April 2025. For comparison, in Ukraine the price of extra-grade milk in April was 30.65 euro cents per kilogram.

Experts note that at the beginning of 2026, high milk yields exceeded the growth rate of demand both in the EU’s domestic markets and in export destinations. This led to an overload of processing capacities and a surplus of products.

The surplus of milk caused a decrease in prices for basic dairy products, in particular butter and cheeses. The growth of their stocks in Europe also puts additional pressure on the raw material market. This is partly attributed to supply disruptions and changes in logistics against the backdrop of the war in the Middle East.

At the same time, the conflict led to higher costs for farmers – in particular for electricity, fuel, fertilizers and feed. Despite the increase in butter consumption, this turned out to be insufficient to compensate for the excess production.

As a result, milk producers have been hit hardest, as the fall in prices for finished products has directly reduced the purchase prices for raw materials.

According to Rabobank, in 2026, milk production in the EU may grow by only 0.9% compared to 2025. Analysts expect this period to be a phase of market stabilization and a transition to cost optimization and efficiency improvements in the dairy industry.

Tags: EU, prices