Global milk production rises amid shifting food commodity prices

Global milk production is increasing, leading to higher supply but downward pressure on purchase prices. Data from StoneX indicates June milk production rose by 2.3% in the US and 5.6% in New Zealand. In Europe, production grew by approximately 1.9%, with significant increases in Slovenia and Germany (7%), Austria (7.9%), and Belgium and Luxembourg (6%). Conversely, Romania saw an 11% decline.

In Slovenia, despite rising production, purchase prices remain low, averaging around 38 cents per liter in June, which is 22% lower than the previous year. This follows a trend of high production costs and concerns regarding future fodder availability due to drought.

On a broader scale, while food prices for items like pork, butter, and milk have recently been low in parts of Europe, the FAO Food Price Index rose sharply in August 2026, reaching its highest level since November 2022. This shift is attributed to logistical chaos, rising costs for fertilizers and fuel, and geopolitical risks in the Black Sea region, despite high global grain harvests.