EU Milk Prices Decline as Global Production Increases
The average milk prices in the European Union saw a decline, reaching €40.48 per 100 kg in March 2026, a drop of €1.02 or 2.5% from February, as reported by European Dairy Farmers (EDF). Compared to the same period last year, prices have decreased by over 19%.
Price trends varied across the region, with certain European processors maintaining stable prices. However, Ireland and the United Kingdom experienced significant decreases due to the conclusion of seasonal bonuses. In contrast, the United States reported a rise in milk prices attributed to higher values for fat and protein and favorable exchange rates.
Globally, milk production growth remains robust. In February 2026, EU milk deliveries increased by 4.4%, following a 4.7% rise in January, driven primarily by Western Europe, Ireland, and Poland. The year-to-date growth for the EU stands at 4.5%.
Other major exporters also expanded their output. New Zealand's production grew by 6%, Australia by 0.6%, and the United States by 2.9%. Argentina reported a significant increase of 10.6%, while Uruguay noted a 6.5% rise. Overall, major exporting regions experienced an approximate 4% increase in production year-on-year.
In commodity markets, butter prices continued to fall sharply, reaching around €400 by the end of April. This decline is driven by weak demand and a plentiful supply, with buyers largely covered for the short term. Additional price pressure is caused by cheaper supplies from Poland and Ireland and an abundant availability of cream.
Meanwhile, prices for skimmed milk powder have strengthened since January, despite higher supply levels. Demand remains solid, supported by buyers willing to pay more, partly due to limited exports from Oceania and the United States, which has increased demand for competitively priced European products.
