The European Union’s dairy industry is facing continued pressure on farm-gate milk prices, with the average raw milk price declining to 42.6 euro cents per kilogram in May 2026. According to the European Commission’s Milk Market Observatory (MMO) newsletter, the average price fell by 0.3% compared with April 2026 and dropped by 19.6% compared with May 2025. The estimated price for June 2026 was 42.3 cents per kilogram, indicating a further monthly decline of 0.7%.
The latest figures highlight changing market conditions for dairy farmers, milk processors and other stakeholders across the European dairy supply chain. Falling farm-gate prices can affect farm profitability, investment decisions, production planning and the financial stability of milk-producing businesses.
Diverging Milk Prices Across European and Global Markets
The May 2026 figures reveal considerable differences in raw milk prices across EU member states. Malta recorded the highest year-on-year increase at 3%, followed by Greece at 1%. In contrast, Lithuania experienced the steepest decline at 29%, followed by Belgium at 28% and the Netherlands at 26%.
These variations demonstrate that dairy markets across Europe are not experiencing uniform price movements. National milk supply, production costs, processing capacity, demand conditions and the product mix can influence the prices received by dairy farmers. The latest figures indicate that some markets have maintained relative price resilience, while others have experienced substantial downward pressure.
For dairy processors, lower raw milk prices can potentially reduce procurement costs. However, the overall impact on profitability depends on processing expenses, energy prices, labour costs, product selling prices and demand for finished dairy products. For farmers, a prolonged decline in milk prices can squeeze margins, particularly when feed, energy, labour and other operating costs remain elevated.
EU Raw Milk Market: Key Indicators for May 2026
| Market indicator | Latest figure |
|---|---|
| Average EU farm-gate milk price | 42.6 cents/kg |
| Month-on-month change | -0.3% |
| Year-on-year change | -19.6% |
| Estimated June 2026 price | 42.3 cents/kg |
| Estimated June monthly change | -0.7% |
| Highest year-on-year price increase | Malta: +3% |
| Largest year-on-year price decline | Lithuania: -29% |
Source: European Commission, Milk Market Observatory newsletter.
Organic Milk Prices Show Significant Regional Differences
The organic dairy segment also displayed substantial price differences across EU member states in May 2026. Cyprus recorded the highest organic raw milk price at 103.6 cents per kilogram, followed by Bulgaria at 65.7 cents and Denmark at 65.3 cents.
At the lower end of the market, Latvia reported 37.9 cents per kilogram, Romania 39.9 cents and Estonia 40.8 cents.
The price gap between conventional and organic milk markets can reflect differences in production systems, certification requirements, supply availability, processing arrangements and consumer demand. Organic dairy farming generally involves specific production and certification standards, which can influence operating costs and the premiums available to producers.
Nevertheless, the figures underline that organic certification alone does not guarantee uniform returns across markets. Dairy farmers considering organic production need to assess local market demand, conversion costs, certification requirements and the availability of reliable buyers.
US and New Zealand Milk Prices Move Upward
While EU milk prices declined slightly month-on-month, the United States and New Zealand recorded increases in May 2026. The US raw milk price rose to 34.5 cents per kilogram, up 0.3% from April, while New Zealand reached 37.3 cents per kilogram, representing a 1.1% increase.
These movements illustrate the different price trends emerging across major dairy-producing regions. However, direct comparisons require consideration of milk composition, pricing systems, exchange rates, production costs and market structures.
The global price movements remain important for European dairy businesses involved in international trade. Changes in milk prices can influence procurement strategies, export competitiveness and decisions regarding the production of cheese, butter, milk powders and other dairy commodities.
Market Outlook for Dairy Farmers and Processors
The latest Milk Market Observatory data reinforces the importance of monitoring farm-gate prices and broader dairy market indicators. Continued price weakness could place pressure on European milk producers, particularly those facing high input costs or limited opportunities to improve operational efficiency.
Processors and cooperatives will need to balance raw milk procurement, manufacturing costs and market demand while maintaining sustainable relationships with suppliers. Farmers, meanwhile, may need to focus on feed efficiency, herd management, productivity and cost control to protect their margins.
The European Commission’s market monitoring provides an important reference point for assessing price movements and identifying differences between national dairy markets. As the industry moves beyond May 2026, the estimated June price of 42.3 cents per kilogram will be an important indicator to compare against subsequent official data.
For the European dairy industry, the central challenge is ensuring that changing milk prices translate into sustainable outcomes across the supply chain, supporting farm viability, efficient processing and a reliable supply of quality dairy products.