The average price of cow’s milk in the European Union reached €45.12 per 100 kilograms in October 2026, marking the third consecutive monthly increase, according to provisional figures from the European Commission’s Milk Market Observatory. Despite the recent recovery, milk prices remain considerably below levels recorded a year earlier, highlighting continued financial pressure on dairy farmers across major European producing countries.
The October average represents a decline of €7.28 per 100 kilograms compared with €52.40 in October 2025. Although the latest figures indicate improving short-term market conditions, all eight national dairy markets examined recorded annual price declines ranging from 2.6% to 17.5%.
European milk prices show signs of monthly recovery
The October 2026 EU average of €45.12 per 100 kilograms was the highest recorded since January, when the benchmark stood at €45.17. The difference between the two months was just €0.05 per 100 kilograms.
The three consecutive monthly increases suggest that European milk markets may be gradually stabilising following the substantial price corrections experienced earlier in 2026.
However, the annual comparison demonstrates that dairy producers continue to receive significantly lower returns than during the previous year. The improvement in monthly quotations has not yet been sufficient to offset the broader decline in farmgate milk prices.
Germany, France and Italy experience substantial price declines
Germany, the European Union’s largest milk producer, recorded a farmgate milk price of €43.20 per 100 kilograms in October, down from €52.34 a year earlier. This represents a 17.5% decline, equivalent to €9.14 per 100 kilograms.
France, the EU’s second-largest milk producer, recorded €46.25 per 100 kilograms, compared with €51.57 in October 2025, representing a 10.3% reduction.
Italy experienced an even sharper decline of 16.9%, with its milk price falling from €55.84 to €46.42 per 100 kilograms.
Poland also recorded considerable downward pressure, with the average price declining from €52.81 to €44.05 per 100 kilograms, a year-on-year reduction of 16.6%.
These developments highlight the challenges facing dairy producers in several major European milk-producing countries, where lower farmgate returns can affect investment decisions, operating margins and long-term farm sustainability.
Spain records an 11.4% annual milk price decline
Spain’s average cow’s milk price reached €46.02 per 100 kilograms in October 2026, compared with €51.94 during the same month in 2025. The reduction amounted to €5.92 per 100 kilograms, representing an 11.4% annual decline.
Despite the decrease, Spanish milk prices remained €0.90 above the EU average.
Other European markets also recorded annual reductions. Ireland maintained the highest price among the eight countries examined, at €48.36 per 100 kilograms, although this was 2.6% below its October 2025 level of €49.63.
Denmark recorded €47.49 per 100 kilograms, representing a 10.5% annual decline, while the Netherlands reached €45.50, down 14.2% compared with the previous year.
Both countries experienced monthly price increases, reflecting the recent improvement in European market conditions.
Lower milk prices raise concerns over dairy farm profitability
The decline in farmgate milk prices is increasing concerns about the financial sustainability of dairy farming, particularly as producers continue to face expenditure on feed, energy, fertilisers and other livestock inputs.
In Spain’s Castile and León region, the Union of Farmers of Castile and León (UCCL) has called for updated studies examining the cost of producing cow’s milk. The organisation believes reliable production-cost benchmarks are necessary to assess farm profitability and strengthen farmers’ positions during supply contract negotiations.
The Coordinating Organisation of Farmers and Livestock Breeders (COAG) has also raised concerns about pressure on producers to accept contracts that may not adequately cover production expenses.
The situation has broader implications for the dairy sector, including farm closures, investment decisions and generational succession, as lower returns can discourage younger farmers from entering the industry.
Falling milk prices highlight the impact on farm revenues
The financial implications become particularly significant when examining large milk deliveries.
A dairy farm delivering 1,000 tonnes of milk would generate approximately €451,200 at the October 2026 EU average price of €45.12 per 100 kilograms. At the October 2025 average of €52.40, the same quantity would have generated €524,000.
This represents a revenue difference of €72,800, assuming unchanged milk volumes, composition, quality and other commercial conditions.
Meanwhile, the León agricultural commodity exchange established a benchmark of €0.475 per litre for milk delivered during the final quarter of 2026, including a 1.5-cent increase compared with the preceding period. The benchmark was maintained at its 29 October meeting.
Overall, October’s figures indicate an improving monthly trend in European milk prices, but the substantial annual reductions continue to challenge dairy farm profitability. The industry’s recovery will depend on stronger market returns, sustainable production costs and fairer contractual conditions for milk producers.