During the holiday season lull, the milk supply in Europe improved, and sales of butter and milk powder decreased, which likely influenced prices, reports Georgii Kukhaleishvili, an analyst of the Association of Milk Producers of Ukraine.
According to preliminary data from the European Commission, in January 2025, the average price of milk raw material in the EU was 54.30 euro cents per kg, which is 0.4% less than in December 2024. Compared to January 2024, the price of milk in the EU increased by 17%. In January, the price of extra grade milk in Ukraine was 48.66 euro cents per kg, corresponding to the level of raw milk prices in Hungary, Spain, and Bulgaria.
Compared to December, the price of raw milk increased in 10 EU member countries. Among the major dairy producers and exporters, raw milk prices increased in France to 50.97 euro cents per kg (+2.2%) compared to December 2024. The highest increase was observed in Estonia to 53.02 euro cents per kg (+10.4%). In most countries, milk prices rose by less than 1% compared to the previous month.
In January, procurement prices remained unchanged in Germany, Denmark, Ireland, Spain, Portugal, Slovenia, Hungary, and Cyprus, compared to December of the current year.
Over the past month, raw milk prices decreased in 8 countries. The most significant price reduction was observed in Lithuania to 55.44 euro cents per kg (-4.5%), Poland to 57.63 euro cents per kg (-6.5%), and Slovakia to 43.39 euro cents per kg (-7.2%).
The most expensive raw milk prices were in Cyprus (66.08 euro cents per kg), Malta (61.08 euro cents per kg), and Ireland (61.47 euro cents per kg). The lowest prices for milk were received by farmers in Slovakia (43.39 euro cents per kg) and Portugal (45.80 euro cents per kg).
Compared to January 2024, raw milk prices increased in 24 European countries and decreased only in Spain and Slovakia. The most significant price increase was observed in Ireland (+41.6%) and Lithuania (+26.1%), while prices decreased in Spain (-4.4%) and Slovakia (-1.4%).
Georgii Kukhaleishvili suggests that the slight decrease in the average raw milk price in Europe in January is likely related to the improved supply-demand balance during the market lull during the holiday season. The supply of cream in Europe increased. Demand for butter slowed down, and buyers entered into contracts for product delivery in the 2nd and 3rd quarters. European producers produced butter in smaller batches and filled warehouses. The demand for butter in European retail chains decreased.
Due to the decrease in import demand for whole milk powder in China, there is a reduction in production and export of European products, and the surplus milk is used in the production of other products. In January, raw milk for milk powder production in the EU was redirected to cheese production, which saw active demand both in Europe and in export markets. Additionally, deliveries of skimmed milk powder from Germany were postponed due to a foot-and-mouth disease outbreak in the Brandenburg region, contributing to an increase in stock volumes.
However, a reduction in milk yields in several European countries and increased production costs prevented raw milk prices from falling more intensively. The devaluation of the euro supports increased exports from Europe and enhances the competitiveness of European products in external markets against the backdrop of rising goods prices in New Zealand, where seasonal milk yield reductions are occurring. This creates conditions for price increases in the future.
Press Service of the Association of Milk Producers
Follow us on Facebook
Related News