FAS: EU dairy feed costs rise 26% as milk prices fall

FAS cited the European Commission’s assessment of industrial feed costs, which uses a combination of cereals and oilseeds. Those costs had been increasing since November 2025.

In 2025, relatively inexpensive fertiliser had helped support farm margins. Fertiliser prices subsequently increased as availability declined.

FAS attributed the change in mineral fertiliser supplies and prices to the Middle East conflict that began in March 2026. The effects were felt during spring field operations and persisted into the autumn sowing period.

Oil prices also stayed high from March 2026 onwards, with a particularly sharp increase in July. This raised farmers’ expenditure on fuel and energy.

Alongside the feed-price increase, FAS identified these higher fertiliser, fuel and energy costs as additional pressures on farm margins.