European Dairy Market Experiences Significant Decline in April 2026

The European dairy market experienced a significant downturn in April 2026, with a 19.1% decline compared to the same month in the previous year. Major dairy-producing countries such as Germany, France, and Denmark were among those hardest hit. Germany reported a decrease of 26.4%, while France saw a 22.3% drop. Denmark experienced the most substantial fall with a 28.3% reduction in dairy production.

Other countries, including the Netherlands, Ireland, Italy, and Poland, also faced notable declines, indicating a widespread weakening of the European dairy market. Despite this, Spain emerged as an exception, with its dairy prices rising by 6.5% to 51.84 euros per 100 kilograms in April, compared to 48.64 euros in April 2025. This resilience is attributed to Spain's unique historical framework for negotiations between industry stakeholders and its relatively higher structural costs and lower production capacity compared to other major European producers.

The report highlights differences in milk prices across Europe. In April 2026, Germany reported a price of 40.04 euros per 100 kilograms, down from 54.37 euros the previous year. France's prices fell to 43.21 euros from 49.26 euros, while Italy's prices decreased to 47.14 euros from 57.58 euros. Denmark saw a reduction to 40.01 euros from 55.73 euros per 100 kilograms.

Within the dairy derivatives market, there were mixed signals of volatility. Butter prices decreased by 3.4% over the last four weeks, while whole milk powder fell by 1.8% and cheddar cheese prices dropped by 0.6%. In contrast, skimmed milk powder showed a recovery, increasing by 5.7%, suggesting potential stabilization in certain segments of the dairy business.

Additionally, the Italian spot milk market showed early signs of recovery, with prices reaching 31 cents per kilogram in the Lodi market, a development closely monitored by industry observers as a potential indicator of market stabilization.