EU Milk Production Rose 3.7% and Expanded Dairy Supply
Data from the European Milk Market Observatory show that industrial milk intake in the European Union grew by 3.7% in the first five months of 2026. In May alone, receipts were 2.4% higher than in May 2025. The figures indicate an increase in available milk across much of the bloc, although national results differed substantially.
Belgium recorded the strongest increase among the countries cited, with milk intake up 8.9%. Austria followed with growth of 8.1%, while Germany, one of the EU’s largest milk producers, registered a 6.6% rise. Output fell in several eastern European markets: Romania declined by 11%, Estonia by 10.3% and Latvia by 4.6%.
Supply also expanded in several major dairy-producing regions outside the EU. In May, Australian milk production increased by 5.4% year on year, New Zealand’s rose by 3.6% and US production grew by 2.3%. The United Kingdom recorded a 0.9% decrease. The EU, the United States and Oceania are among the main participants in international dairy trade.
EU processing figures for January to May showed differing movements across products. Skimmed milk powder output rose by 12%, butter production increased by 9.7%, fermented milk by 4.2% and cheese by 3.2%. Whole milk powder production fell by 5.1%, condensed milk declined by 3.8% and cream decreased by 0.3%.
Organic milk accounted for 3.5% of total EU milk receipts in May. Austria had the highest organic share, at 18.4%, followed by Denmark and Sweden, each at 9.8%. Poland and Ireland each recorded a share of 0.1%, while Portugal reached 0.3%.
Prices moved in different directions in the latest four-week period covered by the report. Butter reached €410 per 100kg after rising 4.6%. Skimmed milk powder was priced at €281 per 100kg, down 3%, while whole milk powder increased by 3.8% to €340 per 100kg. Cheddar was nearly unchanged at €331 per 100kg, with a 0.2% increase. Italy’s spot milk price stood at 43.3 euro cents per kilogram on August 2, 2026.
Feed costs rose by 2.3%, while energy costs increased by 12.4% in week 31 compared with the preceding four-week period. At the Global Dairy Trade auction held on August 4, the overall index was almost unchanged, increasing by 0.1%. Butter fell by 2.3% on the platform, while cheese rose 3.8%, lactose 4.1%, skimmed milk powder 1.2% and whole milk powder 0.2%. Product competitiveness remained differentiated: the United States held advantages in butter and cheddar, the EU in skimmed milk powder, and Oceania in whole milk powder.
