Expert Opinion
Georghii Kukhaleishvili
analyst
Association of Milk Producers

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Butter Curbs Milk Price Hikes in the EU

Raw milk prices in the EU saw a minor increase in August due to lower yields in several member states. However, a significant rise in the purchase price is unlikely due to falling prices for butter and other commodities, according to Georghii Kukhaleishvili, an analyst at the Association of Milk Producers.

Preliminary data from the European Commission shows that in August 2025, the average raw milk price in the EU was 53.23 euro cents per kg, up 0.8% from July 2025. In Ukraine, the price for extra-grade milk in August was 40.74 euro cents per kg.

Compared to August 2024 prices, milk in the EU has become 12% more expensive.

Compared to July, the raw milk price increased in 15 EU member states. Among large producers and exporters of dairy products, raw material prices rose in France to 50.07 euro cents per kg (+1.8%), and saw minor increases in Italy to 58.60 euro cents per kg (+0.8%) and the Netherlands to 57.20 (+0.8%) compared to July 2025. Milk prices rose the most in Belgium, to 56.75 euro cents per kg (+9.9%).

In August, purchase prices remained unchanged in Germany, Denmark, Ireland, Spain, Portugal, Cyprus, and Malta compared to July.

Over the past month, raw milk prices decreased in four countries. The largest price drops were in Estonia, to 48.93 euro cents per kg (-2.3%), and Lithuania, to 48.30 euro cents per kg (-1.2%). In Poland, raw milk prices fell to 52.56 euro cents per kg (-0.5%) compared to July.

The most expensive raw milk is in Cyprus (64.80 euro cents per kg) and Malta (63.39 euro cents per kg). The lowest prices for milk are received by farmers in Romania (41.26 euro cents per kg).

Compared to August 2024, raw milk prices have risen in 25 European countries. Prices increased the most in Belgium (+26.8%) and Latvia (+24.7%) compared to the same period last year. Prices decreased only in Romania (-8.2%) compared to last year.

Georghii Kukhaleishvili suggests that the moderate rise in EU raw milk prices in August is due to reduced raw milk production in 12 European countries, including major dairy exporters such as Germany, the Netherlands, and France. France is dealing with a lumpy skin disease outbreak that has negatively affected milk production. Around 1,000 head of cattle were culled, and a vaccination campaign has covered 100,000 cows in France's key cheese-producing regions.

According to AHDB data, due to reduced yields in Germany and the Netherlands, the EU increased its dairy product imports by 3.5% in the second quarter of 2025 compared to the same period last year. According to the Ornua forecast, European milk production will likely grow by 0.5% annually, but weather conditions could be a limiting factor.

A significant increase in EU raw milk prices has not occurred, influenced by falling global prices for butter, which for many months had been the driver of purchase prices. In the future, the growth of raw milk prices in Europe may be curbed by increased imports of cheaper American butter. According to new trade agreements between the US and the EU, Europeans can annually purchase up to 20 thousand tonnes of butter from American producers duty-free.

Prices for butter, milk powder, and other dairy products are likely falling due to the increased supply of raw milk with the start of the new production season in New Zealand and positive yield trends in the US, Argentina, and Uruguay since the beginning of the year. Among the major milk producers in Europe, Ireland and Poland increased their yields in January-July 2025.

Press service of the Association of Milk Producers


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