Dairy Products EU European Dairy Growth News

EU Milk Collection Rises 5% as Global Dairy Production Expands

January 2026 data shows stronger EU milk collection, varied dairy product output and continued growth in major global markets.

European milk production began 2026 with a significant increase in cow’s milk collection, according to the latest figures from the European Commission’s Milk Market Observatory. The January update also highlights contrasting trends in dairy product manufacturing and continued growth in milk production across several major global markets.

EU Milk Collection Shows Strong Growth

EU cow’s milk collection increased by 5% in January 2026 compared with the same month of the previous year. The growth was not uniform across member states, with some countries recording substantial increases while others experienced declines.

Belgium recorded the highest increase in milk collection at 10.1%, followed by Cyprus at 9.1% and Austria at 8.8%. These figures indicate strong production growth in several European dairy markets.

In contrast, Romania recorded the largest decline, with milk collection falling by 10.9%. Estonia and Latvia also experienced decreases of 7.4% and 4.6%, respectively.

EU Member State

Change in January 2026 milk collection

Belgium

+10.1%

Cyprus

+9.1%

Austria

+8.8%

Romania

-10.9%

Estonia

-7.4%

Latvia

-4.6%

Global Milk Production Continues to Expand

The January figures also show increased milk production in several major dairy-producing countries. Production rose by 1.5% in Australia, 2% in New Zealand, 3.2% in the United States and 3.8% in the United Kingdom.

These increases suggest that global milk availability remained on an upward trend at the beginning of the year. However, the impact on dairy markets will depend on how production growth compares with demand and the output of different dairy products.

Butter and SMP Production Record Strong Increases

EU dairy product production in January 2026 showed particularly strong growth in butter and skimmed milk powder (SMP).

Butter production increased by 8.4%, while SMP production rose by 20.9%. The substantial increase in SMP output points to stronger manufacturing activity in this product category.

Whole milk powder (WMP) production, however, declined by 6.7%. Condensed milk production recorded a marginal increase of 0.3%, while cream production fell by 3.6%.

Drinking milk production decreased by 1.2%, whereas fermented milk and cheese production increased by 1.8% each.

Dairy product

Change in January 2026 production

Butter

+8.4%

Skimmed milk powder

+20.9%

Whole milk powder

-6.7%

Condensed milk

+0.3%

Cream

-3.6%

Drinking milk

-1.2%

Fermented milk

+1.8%

Cheese

+1.8%

Organic Milk Maintains a Significant Share

Organic milk accounted for 3.6% of total raw milk collected in the EU in January 2026.

Austria recorded the highest organic milk share at 18.2%, followed by Denmark at 10.6% and Sweden at 10.2%. These figures demonstrate the stronger presence of organic dairy production in several northern and central European markets.

Poland recorded the lowest share at 0.1%, while Portugal stood at 0.3%. Hungary and Bulgaria each recorded an organic milk share of 0.4%.

Country

Organic milk share of total collection

Austria

18.2%

Denmark

10.6%

Sweden

10.2%

Poland

0.1%

Portugal

0.3%

Hungary & Bulgaria

0.4%

What the January Data Means for Dairy Markets

The January 2026 update presents a mixed picture of the dairy sector. Stronger milk collection in the EU and increased production in major global markets point to greater milk availability, while the varied output of dairy products reflects differences in manufacturing trends.

The increase in butter and SMP production is particularly notable, while the decline in WMP production highlights the importance of product-specific market conditions.

For dairy farmers, processors and traders, these figures provide an important starting point for understanding the direction of milk supply and dairy product production in 2026. The relationship between supply, demand and product output will remain central to the evolution of dairy markets throughout the year.

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