European Milk Prices Rise as Butter and Powder Markets Improve
Milk prices paid by processors across Europe continued to increase into July, although the latest comparison showed marked differences among companies and countries. The benchmark used for the comparison was ZuivelNL’s standard measure, based on milk containing 4.2% butterfat and 3.4% protein, with all prices stated before VAT.
Arla Foods recorded higher payments as the values assigned to both butterfat and protein rose. DMK, the German dairy cooperative, also increased its price. Saputo Dairy UK reported a monthly gain of about 5% across milk components, with currency movements providing additional support to its effective milk price.
The European figures contrasted with those from the United States, where farmgate milk values fell. Lower domestic returns for milk fat and protein contributed to the weaker US result in the comparison. For European producers, the prices of butterfat and protein remained important elements in the final amount paid by processors.
Among the Irish cooperatives in the comparison, Tirlán was the only one to exceed the European average after incentive payments were counted. Its base price was €36.97 per 100kg. A Sustainability Action Payment of €0.50 per 100kg raised the reported effective payout to €40.36 per 100kg, about 10 cents above the continental average.
Dairygold recorded its third successive monthly increase. The cooperative lifted its base price to €37.78 per 100kg, while sustainability premiums brought the effective figure to €39.43 per 100kg. That result remained below Tirlán’s payment after incentives were included.
EU milk deliveries continued to grow seasonally, but the pace of expansion had slowed from April, with collection volumes still relatively high against longer-term averages. Belgium, Germany and the Netherlands reported higher intake, while Poland recorded its first year-on-year fall in milk supply in several years. Ireland also saw deliveries lose momentum from late spring.
Summer heatwaves and soil-moisture deficits affected parts of western Europe and temporarily reduced milk availability in some areas. The combination of changing component values, stronger butter and powder markets, and slower supply growth supported procurement prices, while differences in production trends and processor pricing produced varying outcomes across the region.
