Positive Trends in Milk Prices Expected as 2026 Begins

The ICMSA Dairy Committee, represented by Chairperson Noel Murphy, expressed optimism regarding the upcoming milk price announcements for February supplies. Following six months of declining milk prices, the beginning of 2026 has shown a positive shift with the Global Dairy Trade experiencing five consecutive price increases. Although the GDT metric does not directly influence all European prices, it is considered a strong indicator of potential price directions.

Since the start of the year, Dutch dairy quotes for the 'standard' butter and skim milk powder mix have risen by 6.5 cents per litre over a nine-week period, with a 1.5 cents increase in the last week alone. Whole milk powder prices have also increased by 3 cents per litre, reflecting a renewed confidence in the market.

Noel Murphy highlighted ongoing challenges such as rising costs in farm inputs like fuel and fertilizer, which continue to pressure dairy farmers financially. He emphasized that February, despite accounting for only 4% of annual supply for a traditional spring herd, is crucial as it marks the first milk payment of the year, impacting farmer confidence significantly.

Murphy urged that the positive market trends should translate into immediate increases in milk prices to support farmers during this critical period. He concluded by stating that ensuring a positive start to 2026 is essential for the dairy sector, given the current economic pressures faced by farmers.