Butter and whole milk powder rise sharply, while SMP, whey and cheese prices decline year-on-year
Brussels, August 28, 2026: European dairy commodity markets are showing contrasting price movements, with butter and whole milk powder (WMP) recording substantial year-on-year gains while skimmed milk powder (SMP), whey powder and several major cheese categories remain below their levels from a year earlier.
The latest figures come from the European Commission’s Milk Market Observatory, which released its weekly dairy commodity price report on August 27, covering market developments through August 23. The data, updated on August 26, provides a snapshot of benchmark prices across key dairy commodities in the European Union.
Butter market strengthens
Butter recorded one of the strongest performances among the commodities tracked in the latest report. The EU average butter price reached €404 per 100 kilograms, equivalent to €4,040 per tonne, representing a 21% increase compared with the same period last year.
The increase indicates continued strength in the European butter market and contrasts with the weaker performance of several milk powder and cheese categories.
Butter prices are closely watched by dairy processors and producers because changes in the value of milk fat can influence milk returns and the relative profitability of different dairy product streams.
Whole milk powder posts 70% annual increase
Whole milk powder was the strongest performer in percentage terms among the products covered in the report.
The EU average WMP price reached €356 per 100 kilograms, or €3,560 per tonne, marking a 70% year-on-year increase.
The sharp rise demonstrates a significant change in WMP market conditions compared with the previous year. WMP prices are influenced by international demand, milk availability, commodity inventories and the balance between milk fat and protein markets.
SMP prices fall sharply
In contrast, skimmed milk powder continued to experience significant downward pressure. The latest EU average SMP price stood at €291 per 100 kilograms, equivalent to €2,910 per tonne, representing a 43% decline from the same period last year.
The divergence between WMP and SMP highlights the different market dynamics affecting dairy proteins and milk-fat products.
Cheese markets remain weaker
The European cheese market also recorded year-on-year declines across several major varieties.
| Dairy commodity | EU average price | Year-on-year change |
|---|---|---|
| Butter | €404/100 kg | +21% |
| Whole milk powder | €356/100 kg | +70% |
| Skimmed milk powder | €291/100 kg | -43% |
| Whey powder | €167/100 kg | -16% |
| Cheddar | €335/100 kg | -26% |
| Emmental | €548/100 kg | -15% |
| Gouda | €382/100 kg | -22% |
| Edam | €375/100 kg | Not specified |
Cheddar averaged €335 per 100 kilograms, down 26% year-on-year. Emmental stood at €548 per 100 kilograms, a 15% decline, while Gouda averaged €382 per 100 kilograms, down 22%.
Edam was reported at €375 per 100 kilograms, although the available report did not specify its year-on-year movement.
Whey powder also declines
Whey powder prices averaged €167 per 100 kilograms, representing a 16% year-on-year decrease.
The decline adds to the broader weakness seen across several dairy protein and cheese markets. Whey prices can be influenced by cheese production levels, demand from food and feed industries and international market conditions.
Mixed signals for Europe’s dairy sector
The latest figures underline the increasingly differentiated nature of European dairy commodity markets. Stronger butter and WMP prices suggest improved conditions in selected product categories, while declining SMP, whey and cheese prices point to continued pressure elsewhere.
For dairy processors, the price divergence could influence product mix and processing margins. For farmers, the ultimate impact will depend on how commodity prices translate into farmgate milk prices and how processors balance returns from milk fat, protein and other components.
The European Commission’s Milk Market Observatory provides regular market data that allows producers, processors, traders and analysts to track these changes and assess emerging trends.
With butter and WMP showing significant annual gains while other commodities remain under pressure, European dairy markets enter the final months of 2026 with a complex and uneven price landscape.
