European Milk Powder Prices Rose as Global Dairy Markets Diverged
Fedeleche’s review, based on information from the USDA, Dairy Australia and AHDB collected between September 25 and October 9, described differing conditions across products and regions. European milk powder prices showed some of the clearest gains in the period, while other dairy markets displayed less consistent movements.
In Europe, quotations for both whole milk powder and skimmed milk powder rose significantly over the three months covered by the assessment. Fedeleche also reported indications of reduced milk availability in some countries. In Britain, second-quarter milk deliveries fell from a year earlier, with AHDB linking the decline to heat stress, weaker forage growth and bluetongue disease.
Ireland recorded a particularly marked monthly change. Milk output in August was 8.4% lower than in August 2025, while production for January through August was down 2.5% year on year. The cumulative volume nevertheless remained 3.6% above the level recorded in the first eight months of 2024.
Oceania entered October with a more balanced market. Global milk production was still increasing, adding supply, while demand for dairy proteins continued to support prices. New Zealand’s 2026/27 season began with strong production levels. Fedeleche identified possible El Niño-related changes in rainfall and pasture availability as a potential risk to later output, rather than as an already confirmed production decline.
Australia reported a 12% annual reduction in export volume in July. The fall reached 7.6% across July and August. At the same time, Australian cheese imports reached 9,815 tonnes in July, the country’s third-highest monthly total of 2026. The United States remained the leading supplier and increased shipments by 54%, while imports from New Zealand declined.
South American milk production was at seasonally lower levels, and Fedeleche said reduced availability together with firm demand was supporting prices. Production in 2026 continued to grow, but at a slower pace than the strong year-on-year increases recorded in 2025. Conditions varied among Argentina, Uruguay, Chile and Brazil because of differences in rainfall, temperatures, forage supply and costs. Cream prices in the region were described as relatively stable, with current milk-fat supply covering manufacturers’ and traders’ requirements.
