Average milk prices across the European Union declined by 2.5% in March 2026 as rising global milk production continued to pressure dairy markets. According to European Dairy Farmers (EDF), average EU milk prices fell to €40.48 per 100 kg in March, down €1.02 from February and more than 19% lower compared to the same period last year.
The decline was linked to strong milk supply growth across major exporting regions, especially in Western Europe, Ireland and Poland. EU milk deliveries increased 4.4% in February following a 4.7% rise in January, taking year-to-date growth to 4.5%. Other dairy-exporting nations also recorded higher production, including New Zealand with 6% growth, the United States at 2.9%, Australia at 0.6%, Argentina at 10.6% and Uruguay at 6.5%.
The surplus milk supply has sharply impacted commodity markets, with butter prices falling to around €400 by the end of April due to weak demand and abundant cream availability. Meanwhile, skimmed milk powder prices strengthened slightly as limited exports from Oceania and the US supported demand for competitively priced European products. Analysts say continued global production growth and cautious buyer activity are likely to keep pressure on dairy prices in the near term. (DairyNews)
Source: Dairynews7x7 22 May, 2026 Read full article here