European Raw Milk Prices Fall to Historic Low in September 2025

Raw milk markets in Europe faced a significant downturn in September 2025, with spot prices in Germany and the Netherlands dropping to €0.30 per kilogram. According to agronews.ua, this marks the lowest level recorded in years, reflecting deeper concerns across the dairy supply chain.

Primary Market Adjustments Ahead

From 1 October, adjustments to the primary market are anticipated. FrieslandCampina, one of Europe’s leading dairy cooperatives, is expected to announce its purchase prices for October. Historically, the cooperative has implemented reductions of around -4.5 euro cents per month, signalling the likelihood of further downward revisions.

Pressure on the Polish Market

In Poland, dairy processors are also reviewing their pricing strategies. Industry discussions suggest potential cuts of 2 to 10 euro cents per kilogram, depending on company profiles. On average, analysts forecast a correction of 4–5 euro cents, which could significantly impact raw material contracts and farmgate returns.

Ukrainian Market Seeks Stability

Meanwhile, in Ukraine, policymakers and stakeholders are prioritising market stabilisation. Efforts are focused on halting the autumn rise in purchase prices while exploring the feasibility of increasing distributor selling prices. Risks previously highlighted by analysts—such as reduced consumer demand and heightened supply volatility—are now gaining broader recognition among industry participants.

Outlook

The downward pressure on European raw milk prices in September 2025 underscores the fragile balance between supply and demand. If trends persist into October, farmers across the region may face tighter margins, and processors could struggle to maintain profitability without passing costs along the supply chain.