Cheese and butter prices across the European Union recorded significant year-on-year declines in June 2026, with butter experiencing a much sharper fall than cheese, according to the latest Eurostat data.
Eurostat reported on August 13 that consumer prices for cheese across the 27-member European Union declined by 2.3% between June 2025 and June 2026. The decline was considerably larger for butter and other milk-derived fats, where prices fell by 16.6% over the same period.
The figures are based on the Harmonised Index of Consumer Prices (HICP), which tracks changes in consumer prices for goods and services across EU countries.
Butter Records Sharper Price Decline
The 16.6% year-on-year decline in the butter category represents a substantial reduction compared with the more modest fall recorded for cheese.
The category includes butter as well as other oils and fats derived from milk. The data indicate that consumers across the EU were paying significantly less for these products in June 2026 than a year earlier.
The contrasting movements between butter and cheese highlight differences in pricing conditions across dairy categories.
Cheese Prices Also Decline
Cheese prices fell 2.3% between June 2025 and June 2026.
Although the decline was much smaller than the fall in butter prices, it represents a notable change in consumer pricing for one of Europe’s major dairy categories.
Eurostat compiles these figures using the European Classification of Individual Consumption According to Purpose (ECOICOP), which provides a standard framework for comparing consumer price movements across different categories and countries.
Ireland Sees Similar Dairy Price Trends
Ireland recorded similar declines in several key dairy products.
According to data published by Ireland’s Central Statistics Office (CSO) on August 13, the average price of a two-litre container of full-fat milk fell by 9 cents in the year to July 2026.
Butter recorded an even larger reduction in absolute terms, with the average price of a pound of butter falling by 55 cents over the same period.
The average price of Irish cheddar cheese also declined by 9 cents per kilogram.
The figures suggest that the downward movement in European dairy prices has also been reflected in retail prices in Ireland.
Dairy Prices Decline Despite Broader Inflation
The fall in dairy prices comes against a backdrop of continued overall consumer inflation in Ireland.
The CSO reported that Ireland’s Consumer Price Index increased by 3.4% between July 2025 and July 2026, matching the annual inflation rate recorded in June.
When energy and unprocessed food were excluded, consumer prices increased by 3.2% over the 12 months to July.
Prices also increased marginally by 0.1% between June and July 2026.
The decline in milk, butter and cheese prices therefore stands out against the broader increase in consumer prices.
What the Data Mean for the Dairy Market
The latest figures point to a period of weaker consumer prices for several major dairy products across Europe.
The particularly sharp decline in butter prices could have implications throughout the dairy value chain, including processors, retailers and dairy farmers. Changes in retail prices can also reflect developments in commodity markets, supply conditions, processing costs and consumer demand.
However, consumer prices do not directly translate into farmgate milk prices, as the two are influenced by different factors across the dairy supply chain.
The Eurostat data nevertheless provide an important indication of how dairy price trends are reaching consumers across European markets.