Despite the reduction in milk production due to the heat, procurement prices in the EU in July declined under the pressure of significant stocks of dairy products, weaker export demand, and intensified competition in the global market.
According to preliminary data from the European Commission, in July 2026, the average price of raw milk in the EU stood at 41.84 euro cents per kg, which is 1.16% less than in June 2026. Relative to the price as of July 2025, milk in the EU depreciated by 20.86%. In July, the price of extra-grade milk in Ukraine stood at 31.63 euro cents per kg.
Relative to June 2026, the raw milk price grew in only five EU member states, namely in Denmark to 43.48 euro cents per kg (+3.82%), Latvia to 37.69 euro cents per kg (+0.27%), Romania to 38.19 euro cents per kg (+4.15%), Slovenia to 38.38 euro cents per kg (+0.97%), and Slovakia to 36.86 euro cents per kg (+0.63%).
In July, procurement prices did not change in Germany, Ireland, Greece, Spain, Italy, Cyprus and Malta, Portugal, and Sweden compared to June 2026.
Over the last month, raw milk depreciated in 12 countries, including Belgium to 38.20 euro cents per kg (-7.39%), Bulgaria to 40.21 euro cents per kg (-0.30%), the Czech Republic to 39.01 euro cents per kg (-0.70%), Estonia to 37.85 euro cents per kg (-2.82%), France to 42.91 euro cents per kg (-4.47%), Croatia to 47.82 euro cents per kg (-0.15%), Lithuania to 33.78 euro cents per kg (-2.93%), Hungary to 35.99 euro cents per kg (-1.39%), Austria to 45.00 euro cents per kg (-0.40%), Poland to 40.53 euro cents per kg (-1.60%), and Finland to 48.00 euro cents per kg (-3.73%).
The most expensive raw milk is in Cyprus (66.12 euro cents per kg) and Malta (63.66 euro cents per kg). The lowest prices for milk are received by farmers in Lithuania (33.78 euro cents per kg) and Hungary (35.99 euro cents per kg).
Relative to July 2025, raw milk prices grew only in Greece (+1.56%), Cyprus (+2.04%), and Malta (+0.43%).
The price of milk decreased in 23 countries, namely in Belgium (-25.94%), Bulgaria (-15.38%), the Czech Republic (-26.68%), Denmark (-22.38%), Germany (-25.46%), Estonia (-24.42%), Ireland (-23.41%), Spain (-6.59%), Croatia (-0.52%), Italy (-21.78%), Latvia (-20.70%), Lithuania (-30.91%), Hungary (-27.60%), the Netherlands (-27.31%), Austria (-20.23%), Poland (-23.21%), Portugal (-5.12%), Romania (-6.69%), Slovenia (-23.41%), Slovakia (-25.52%), Finland (-7.39%), and Sweden (-15.48%) compared to last year's period.
The price of raw milk in the EU declined in July despite the reduction of raw milk production and its intake for processing in the EU under the influence of extreme heat. Milk depreciated despite a certain increase in prices for butter, whole milk powder, skimmed milk powder, and Cheddar cheese in the second half of the month. Likely, the growth of procurement prices in the EU is held back by significant warehouse stocks of exchange-traded commodities that accumulated in previous periods, as well as the intensification of competition in export markets. High milk yields and favorable weather conditions in 2025 provided a strong start to 2026. In the first quarter, the largest growth in milk production occurred in the Netherlands, Denmark, France, Belgium, and Poland.
Prices are pressed by weaker demand from Middle Eastern countries. Therefore, the European Commission expects a reduction in whole milk powder exports by 5% in 2026. Europe is gradually losing part of its share in the global dairy trade, yielding to the US, Argentina, and Uruguay, which are strengthening their positions in export markets. Their exports are expected to grow by approximately 2% annually. At the same time, China, which is considered the largest importer of dairy products in the world, has been steadily reducing purchases since 2021.
However, in the second half of the year, the growth rates of milk yields in Europe may slow down due to the deterioration of pasture conditions after the recent heat. High temperatures negatively affected raw milk production in France, Germany, and Italy, which casts doubt on the further growth of its supply in the Northern Hemisphere until the end of summer. This may affect procurement prices. Although, profitability is negatively affected by rising production costs of European farmers due to higher prices for energy resources, fertilizers as a result of the conflict in the Middle East, due to worsening food inflation, and due to the need for additional cooling on farms during the heat.
Press service of the Association of Milk Producers
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