Brussels, August 19, 2026: Dairy commodity markets across the European Union are showing divergent price movements, with the latest data from the European Commission’s Milk Market Observatory highlighting sharp year-on-year declines in skimmed milk powder and several cheese categories, while butter and whey powder recorded significant gains.
The weekly dairy commodity price report, released on 19 August 2026 and covering market data up to 16 August, provides a snapshot of price developments across some of the EU’s major dairy commodities.
The latest figures point to a market characterised by considerable variation between product categories. While butter prices were significantly higher than a year earlier, skimmed milk powder (SMP) and several major cheese varieties recorded substantial year-on-year declines.
Skimmed Milk Powder Prices Remain Under Pressure
Skimmed milk powder was among the weakest-performing commodities in the latest EU market data.
The report placed the latest EU average SMP price at around €288 per 100 kg, representing a 45% decline compared with the same period last year.
National price indications showed differences across major producing and trading markets. France recorded approximately €296 per 100 kg, while Belgium stood at €288 and Poland and Ireland at €287. Czechia recorded around €284 per 100 kg.
The sharp year-on-year decline indicates continued pressure on the SMP market and highlights the different supply-demand dynamics affecting milk powder compared with other dairy commodities.
SMP is an important internationally traded dairy ingredient, used across food manufacturing and other applications. Movements in SMP prices can therefore influence the economics of dairy processing, export competitiveness and returns from milk utilisation.
Butter Prices Move in the Opposite Direction
Butter showed a markedly different price trend.
EU butter prices averaged approximately €398 per 100 kg, representing a 20% increase year-on-year.
The latest national benchmarks included Spain at approximately €414 per 100 kg, Slovakia and Czechia at €398, Germany at €394, Poland at €385 and France at €369.
The contrast between butter and SMP prices illustrates the uneven performance of dairy commodities during the current market period.
Butter has maintained stronger price momentum than several other dairy products, potentially reflecting differences in demand, supply availability and the allocation of milk solids between dairy processing streams.
For dairy processors, such differences can influence product mix decisions and the relative attractiveness of manufacturing butter compared with milk powders and other commodities.
Whole Milk Powder and Whey Powder
Whole milk powder prices were reported at approximately €356 per 100 kg in the latest data.
The report did not specify a year-on-year percentage change for WMP, making it difficult to directly compare its current performance with the same period in 2025 based solely on the published figures.
Whey powder, however, recorded a significant increase.
The average EU whey powder price stood at around €146 per 100 kg, representing a 49% year-on-year increase.
The strong movement in whey powder is notable given the product’s role as an important dairy ingredient. Whey is widely used in food and beverage applications, including nutritional products, processed foods and animal feed.
The sharp increase suggests that whey markets are experiencing considerably different conditions from those affecting SMP.
Cheese Prices Remain Under Pressure
Several major European cheese categories also recorded year-on-year declines.
Cheddar averaged approximately €335 per 100 kg, down 26% compared with the same period last year.
Emmental prices stood at around €552 per 100 kg, representing an 11% decline year-on-year.
Gouda averaged approximately €383 per 100 kg, down 23% from a year earlier.
Edam prices were reported at around €370 per 100 kg, although the report did not provide an explicit year-on-year change for the product.
The declines across several major cheese categories contrast sharply with the increase in butter prices and the strong rise recorded for whey powder.
Diverging Commodity Performance Highlights Market Complexity
The latest figures underline the complexity of the European dairy commodity market.
A common assumption is that dairy commodity prices move broadly in the same direction because they are all derived from milk. However, the current market demonstrates that individual products can experience substantially different price trends depending on their specific supply-demand conditions.
For example, the latest figures show:
- 🥛 SMP: €288/100 kg, down 45% year-on-year
- 🧈 Butter: €398/100 kg, up 20% year-on-year
- 🥛 WMP: €356/100 kg
- 🧪 Whey powder: €146/100 kg, up 49% year-on-year
- 🧀 Cheddar: €335/100 kg, down 26% year-on-year
- 🧀 Emmental: €552/100 kg, down 11% year-on-year
- 🧀 Gouda: €383/100 kg, down 23% year-on-year
- 🧀 Edam: €370/100 kg
The differences demonstrate why dairy processors and traders closely monitor individual commodity markets rather than relying solely on broad dairy price indicators.
Implications for Dairy Processors
The divergence in commodity prices has important implications for European dairy processors.
When prices for individual dairy products move in different directions, processors may have greater incentives to adjust their production mix depending on available milk, processing capacity and market demand.
Higher butter prices, for example, can improve the relative economics of butter production, while weaker SMP prices may place pressure on returns from plants producing milk powder.
At the same time, the sharp increase in whey powder prices could support stronger returns from whey streams generated during cheese production.
These differences can influence processing decisions and the overall value that companies are able to extract from each unit of milk.
Impact on International Dairy Trade
European dairy commodity prices also have implications beyond the EU market.
The European Union is a major participant in global dairy trade, exporting products including cheese, butter and milk powders to international markets.
Changes in EU commodity prices can affect export competitiveness, particularly when European prices diverge significantly from those in other major dairy-producing regions.
A decline in SMP prices, for instance, could improve the competitiveness of European exporters in international powder markets, depending on currency movements, freight costs and competing supply from other exporting countries.
Similarly, higher butter prices could influence global trade flows if European product becomes relatively more expensive compared with supplies from other major exporters.
Market Signals for the Global Dairy Industry
The latest EU figures provide several signals for the wider global dairy industry.
The sharp decline in SMP prices suggests weakness in one important dairy commodity market, while stronger butter and whey prices indicate that demand and market conditions remain more supportive in other categories.
For international dairy companies, these differences reinforce the importance of monitoring commodity-specific trends.
The global dairy market is influenced by multiple factors, including milk production, feed costs, consumer demand, trade policies, currency movements, inventories and international purchasing activity.
Consequently, a rise in one dairy commodity does not necessarily indicate a broader increase across the entire dairy market.
Importance for Milk Value and Farmer Returns
Commodity prices also have implications for dairy farmers because processors ultimately depend on milk procurement economics.
The profitability of different processing streams can affect the value processors place on raw milk and, over time, influence farmgate pricing.
However, the relationship between commodity prices and farmgate milk prices is not immediate or uniform. Dairy companies also need to account for processing costs, logistics, domestic market conditions, contracts and other operational factors.
The current divergence between butter, SMP, whey and cheese prices therefore provides an important backdrop for understanding the economics of milk utilisation across the European dairy sector.
Looking Ahead
The European Commission’s latest Milk Market Observatory data presents a mixed picture for the EU dairy market in mid-August 2026.
Butter and whey powder have demonstrated strong year-on-year price growth, while SMP and several major cheese categories have experienced significant declines. WMP prices remain an important market indicator, although the latest report does not provide a year-on-year percentage change.
The wide variation between products highlights the importance of product-level market monitoring for dairy processors, exporters, traders and farmers.
As global dairy markets continue to respond to changing supply, demand and trade conditions, the direction of individual commodities will remain important for determining processor margins, export competitiveness and milk value.
For the European dairy industry, the latest figures suggest that 2026 is continuing to be a highly differentiated market, with strong opportunities in some dairy categories existing alongside considerable price pressure in others.
