Global Milk Prices Stabilize After Period of Increase

The International Farm Comparison Network (IFCN) has reported a stabilization in global milk prices after experiencing increases over the past five months. The market showed divergent trends across dairy products in June, with skimmed milk powder and whey powder experiencing price increases, while cheese, whole milk powder, and butter saw either moderate decreases or stabilization.

Skimmed milk powder continued to rise slightly, while whey powder rose by 5.7% monthly, bolstered by consistent international demand for dairy proteins and long-shelf-life products, particularly in major importing markets.

The report indicates that global milk production is growing above its historical average, which is helping to moderate the upward pressure on prices. The United States is contributing to the increased global supply with sustained production growth. Conversely, New Zealand is experiencing its seasonal low in production, resulting in reduced milk availability ahead of its new production season.

In Europe, milk production scenarios vary. Germany maintains stable production levels due to a steady dairy herd, whereas France faces concerns over milk production and animal welfare due to high temperatures and limited forage availability at the end of June.

The IFCN notes that although geopolitical tensions have recently eased, stabilizing oil and fertilizer prices partially, production costs remain highly volatile. Factors such as energy, fertilizer, and animal feed costs are crucial to the profitability of dairy farms.

Overall, the IFCN sees the international dairy market as entering a phase of greater balance, though it remains sensitive to sudden changes in production, demand, and costs. The ongoing demand for milk powder, dairy proteins, cheese, and butter is expected to play a key role in shaping the market's direction in the second half of 2026.