The latest European Commission figures indicate rising milk supply, expanding dairy production, and stronger export volumes in the EU.

EU milk collection continued to increase in 2026, with deliveries up 3% between January and August compared with the same period last year.

However, farm-gate milk prices remain under pressure, averaging 42.8c/kg in August, or 19.7% year-on-year decline, and 8.3% lower than the five-year average.

The estimates for the average EU milk price show a 2.3% month-on-month increase in August, with a further 0.9% increase for September to 43.11c/kg.

According to the European Commission, Hungary recorded the sharpest annual price decline at 29%, followed by Czechia and Lithuania (both 26%), Slovakia (25%), the Netherlands and Germany (both 24%).

Cyprus was the only EU country to record higher milk prices compared to the same period in 2025.

Milk collection

The collection of cow's milk in the EU rose by 0.6% in August compared with August 2025, with deliveries rising in 19 EU countries, the figures said.

Greece recorded the strongest growth at 13.3%, followed by Slovakia (9.6%) and Denmark (4%).

The steepest declines were reported in Romania (-13.6%), Estonia (-11.7%) and Ireland (-8.4%).

The cumulative EU milk collection was 3% higher for the period from January to August this year than in the corresponding period in 2025.

Organic milk accounted for 3.2% of total EU milk collection in August, with Austria recording the highest share at 16.5%, followed by Denmark (9.7%), and Sweden (9.5%), according to the figures.

Dairy production

EU dairy production also increased during the first eight months of 2026.

The European Commission reported that skimmed milk powder (SMP) production rose by 9%, butter by 7.7%, cheese by 3.6%, drinking milk by 1.1%) cream by 0.1%, and fermented milk products by 5.1%.

In contrast, whole milk powder production fell by 4.4%, and condensed milk by 3.7%.

Dairy commodity prices showed mixed movement in the four weeks to October 18.

Skimmed milk powder (SMP) prices increased by 9.1%, while whole milk powder (WMP) rose by 2.8%, while whey powder, as well as gouda, edam and emmental cheese prices also recording modest increases.

Butter prices, on the other hand, declined by 3.8%.

SMP and whey powder prices were particularly strong year-on-year, showing increases of 54.6% and 52.3% respectively.

Exports

EU dairy exports increased by 11.9% in milk-equivalent volume between January and July 2026 compared with the same period last year, the European Commission reported.

However, export value declined by 1.5%, despite exceeding €9.47 billion, indicating that higher export volumes have not translated into higher overall returns.

Exports increased across most major dairy categories, including butter (+38%), butteroil (+40%), skimmed milk powder (+14%), and cheese (+6%).

Whey powder exports declined by 4%.

China, the US, UK and several Middle Eastern and Asian markets recorded increased demand for selected EU dairy products.