European milk prices continued to strengthen into July as improving butter and milk powder markets supported procurement values across several major dairy companies. However, the latest comparative data showed significant differences between individual processors and countries, reflecting variations in milk components, market conditions and supply trends.
The comparison uses the standard ZuivelNL milk price benchmark, based on milk standardized to 4.2% butterfat and 3.4% protein, with prices excluding VAT.
Arla and Saputo Lead Price Gains
Several major dairy companies in northern and western Europe recorded increases in milk procurement prices. Arla Foods, the Danish-Swedish dairy cooperative, recorded higher payouts as both butterfat and protein component values increased.
DMK, the German dairy cooperative, also recorded upward movement, while Saputo Dairy UK reported a monthly increase of around 5% across milk components. Currency movements provided additional support to Saputo Dairy UK’s effective milk price.
The developments indicate that stronger values for key dairy commodities, particularly butter and milk powders, are continuing to influence farmgate milk pricing across Europe.
In contrast, comparative figures from the United States showed declining farmgate milk values. Lower domestic realizations for milk fat and protein contributed to the weaker US position compared with the European developments.
Tirlán Moves Above European Average
Among the Irish cooperatives included in the European comparison, Tirlán was the only processor to exceed the European average once incentive payments were included.
Tirlán’s base milk price stood at €36.97 per 100kg, below the continental base average. However, its €0.50 per 100kg Sustainability Action Payment increased the effective payout to €40.36 per 100kg.
With the incentive included, Tirlán’s effective price was approximately 10 cents per 100kg above the European average.
The figures demonstrate the growing influence of sustainability-related payments in determining the effective price received by dairy farmers.
Dairygold Records Third Consecutive Increase
Dairygold continued its upward price trend, recording its third consecutive monthly increase.
The Irish cooperative raised its base milk price to €37.78 per 100kg. After sustainability premiums were included, its effective price reached €39.43 per 100kg.
The increase reflects the continued strength of component values in the Irish milk market, although Dairygold’s effective payout remained below Tirlán’s incentive-adjusted level in the latest comparison.
EU Milk Supply Growth Slows
On the supply side, the pace of seasonal growth in EU milk deliveries has slowed since April, although collection volumes remain relatively high compared with longer-term averages.
Milk production trends have also differed considerably between European countries.
Belgium, Germany and the Netherlands continued to report growth in milk intake, while Poland recorded its first year-on-year decline in milk supply in several years.
Ireland has also experienced a noticeable slowdown in milk deliveries since late spring. Weather conditions have contributed to the weaker supply momentum, with summer heatwaves and soil moisture deficits affecting parts of Western Europe.
These conditions have temporarily reduced milk availability in some regions, influencing the balance between dairy commodity demand and raw milk supply.
Dairy Markets Continue to Support European Prices
The combination of stronger butter and powder markets, changing milk component values and slower seasonal supply growth has supported European milk procurement prices.
However, the contrasting trends between European and US farmgate prices highlight the differences in regional dairy market conditions.
For European farmers, developments in butterfat and protein values remain particularly important because these components increasingly influence the final price paid by processors.
With milk supply patterns continuing to diverge across major producing countries and weather conditions adding uncertainty, European milk prices could remain closely linked to commodity market movements and individual processor pricing strategies.