[REVISION HISTORY]

EU and global dairy market price and supply shifts

4 recorded revisions of this situation.

What changed

2026-09-30 16:38 UTC → 2026-10-24 13:01 UTC · added ~~removed~~

EU and ~~German~~ global dairy market price ~~fluctuations~~ and supply shifts

In August 2026, dairy product prices in the European Union trended upward. Data from Germany indicated increases in butter, skimmed milk ~~powder,~~ powder (SMP), whole milk ~~powder,~~ powder (WMP), Edam cheese, and whey powder. While ~~some~~ butter, WMP, and Edam prices remained lower than the previous year, ~~skimmed milk powder~~ SMP and whey powder saw significant year-on-year ~~increases.~~ increases, with SMP up 22.5% and whey powder up 74.5%. Analysts attributed rising powder prices to expanding demand for proteins, even as the growth rate of EU milk deliveries began to ~~decelerate.~~ decelerate from 5% in the first quarter to 3.4% between January and June. By late September, the German dairy industry, through the Milchindustrie-Verband (MIV), began seeking price increases for fresh products like milk, yogurt, and quark, noting that current milk prices had reached a five-year low. The MIV stated that significant price increases ~~for these products~~ are “urgently necessary” and has commenced contract negotiations for the “White Line” of fresh products. This demand ~~for higher prices~~ is driven by decreasing regional milk supplies due to summer droughts in Germany and Europe, alongside anticipated global supply reductions linked to the El Niño ~~effect in the tropical Pacific.~~ effect. Furthermore, a surge in demand for whey protein ~~products~~ concentrates is increasing the need for ~~whey concentrates. Because 49% of German-produced dairy products are exported, the industry remains highly sensitive to these global market developments. Recent reports indicate that current~~ milk prices are approximately 25 percent below last year’s levels, while rising costs for energy and fertilizers have further pressured farmers to seek higher revenues to maintain production. Some price increases are already appearing, such as a 14-cent rise in the price of store-brand butter in mid-September. supply. Global market shifts are further evidenced by rising export volumes; between January and May 2026, global milk powder exports rose by 12.6%, with strong demand from China and Algeria. In Germany, the industry is also facing structural changes through consolidation, with major players like Müller and Arla pursuing acquisitions. Despite these pressures, intense price competition among retailers like Aldi and Lidl continues to impact farmer revenues.

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