Cheese prices in Europe have dropped to around €3,580 per tonne, matching the value of whole milk powder (WMP), a rare event signalling stress in the dairy sector. Traditionally, cheese commands a premium due to higher processing and storage costs.
According to the Irish Farmers Journal, butter prices have also plunged by €270 per tonne to €5,040, their lowest level in two years, down nearly 30 % in ten weeks. At the same time, the Global Dairy Trade (GDT) results show a continued decline: WMP fell 2.4%, skim milk powder 1.9%, and the overall index 1.4%.
Analysts attribute the downturn to weak global demand, rising supply, and export challenges. The parity between cheese and milk powder prices implies severe margin pressure for producers and processors, especially as input costs remain high.
If current trends persist, the market may see a strategic shift towards higher-value and niche dairy products to offset commodity volatility. The present convergence of prices is more than a short-term anomaly; it reflects deeper structural strains in the European dairy economy.
