Dramatic Decline in Raw Milk Prices Across Europe and UK in 2026

The global dairy market has seen substantial changes in 2026, with significant price adjustments in various regions. The UK recorded the most significant drop in raw milk prices, falling by 19.2% to USD 0.468 per liter. This is part of a broader market normalization following previously high price peaks and reduced export demand.

In the European Union (EU 27), prices decreased by 13.2%, settling at USD 0.499 per liter, though still relatively high compared to global figures. The United States saw a decrease of 10.5%, influenced by slowing Asian consumption and increased input costs.

South America's Contrasting Trends

Chile emerged as a surprising leader with a 4.2% increase in milk prices to USD 0.500 per liter, marking the best annual performance globally. In contrast, Argentina faced a significant decline of 17.4%, with prices dropping to USD 0.350 per liter due to internal inflation, currency volatility, and high logistical costs.

Uruguay and Brazil experienced moderate decreases of 2.5% and 6.3%, respectively, largely tied to regional currency dynamics.

Asian Market Dynamics

China, the world's largest milk importer, increased its producer price by 3.5% to USD 0.440 per liter, indicating ongoing efforts to boost local production. Meanwhile, New Zealand maintained price stability with a slight 0.8% decrease, supporting its efficient export model and resilience to external shocks.