EU Milk Purchase Prices Fall 20.86% Year-on-Year Amid High Stocks and Weak Demand
European Milk Prices Under Pressure
The average purchase price of milk in the European Union has fallen by 20.86% compared with July 2025, despite lower milk yields and challenging heat conditions. Analysts attribute the decline primarily to high dairy stock levels and weaker demand from key international markets, particularly China.
Prices Rise in Only Five EU Countries
Milk prices increased during July in just five EU countries:
- 🇩🇰 Denmark: 43.48 euro cents/kg, up 3.82%
- 🇷🇴 Romania: 38.19 euro cents/kg, up 4.15%
- 🇱🇻 Latvia: 37.69 euro cents/kg, up 0.27%
- 🇸🇮 Slovenia: 38.38 euro cents/kg, up 0.97%
- 🇸🇰 Slovakia: 36.86 euro cents/kg, up 0.63%
Prices remained unchanged in nine countries, while 12 countries recorded declines.
Wide Gap Across EU Milk Prices
Cyprus recorded the highest milk purchase price at 66.12 euro cents per kg, followed by Malta at 63.66 euro cents/kg.
At the other end of the scale, Lithuania reported the lowest price at 33.78 euro cents/kg, while Hungary stood at 35.99 euro cents/kg.
Weak Global Demand Weighs on Prices
The decline comes despite reduced milk production in parts of Europe. Analysts point to high inventories and weaker demand from China and the Middle East as key factors weighing on the market.
The European Commission expects whole milk powder exports to decline by 5% in 2026, adding further pressure to the European dairy market.
Ukraine Sees Slower Dairy Demand
In Ukraine, the July price of extra-class milk stood at 31.63 euro cents per kg.
Demand for dairy products has also slowed in the Ukrainian market. However, this weaker demand could be followed by a 5–10% increase in milk prices by the end of summer, according to the report.
Market Outlook
The European dairy market is facing a difficult combination of lower production, high inventories and weak international demand. While reduced milk output could eventually support prices, the current imbalance between supply and demand continues to put pressure on farmers and processors.
