European Dairy Commodity Prices Rise as Supplies Tighten

Source: dairydimension.com
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Butter, whole milk powder and skim milk powder all became more expensive at the latest Dutch Dairy Board auction. Summer drought conditions have reduced milk availability, adding pressure to European dairy supplies.
European Dairy Commodity Prices Rise as Supplies Tighten

At Wednesday’s Dutch Dairy Board auction, butter rose by €50 per tonne to €4,000. That was its highest recorded price since April 2026, though it remained well below the €6,820 per tonne recorded at the same time last year.

Whole milk powder gained €90 per tonne, reaching €3,610. The price was the product’s strongest since October 2025. Skim milk powder increased by €70 per tonne to €3,030, a level described as a four-year high.

The price movements came as milk supplies tightened after summer drought conditions. Reduced milk availability has placed pressure on processors and supported prices for several major dairy commodities. Market sources cited in the report said that production might need to fall further before a stronger and more sustained recovery takes place.

Weather conditions, output volumes and farmers’ responses to input costs were identified as factors affecting the availability of dairy products. The supply position was described as an important consideration for European dairy commodity markets in the months ahead.

Farm efficiency and sustainability are also being addressed in Northern Ireland. A holding run by Caryn Webster at Islandmagee is due to host a UK Dairy Carbon Network event on September 3. The event will examine how breeding choices can affect genetic improvement, the length of cows’ productive lives and overall farm efficiency.

Webster’s farm milks 60 Holstein cows on 116 acres using an autumn-calving system. Each cow produces about 7,500 litres of milk, while annual concentrate use is approximately two tonnes per cow. The herd generally grazes between March and October. The farm walk will allow other dairy farmers to review the breeding approach and its relationship to herd performance and environmental objectives.

The UK Dairy Carbon Network works with more than 50 dairy farms across the country on practical measures intended to reduce greenhouse-gas emissions. Its work includes efforts to improve longevity, efficiency and productive performance, with the stated aim of producing milk more efficiently and reducing the environmental burden associated with less productive animals.


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