Sufficient supply of raw milk in the European market at the beginning of the year put pressure on purchase prices
According to preliminary data from the European Commission, in February 2026, the average price for raw milk in the EU was 44.19 eurocents per kg, which is 2.13% less than in January 2026. Compared to the price as of February 2025, milk in the EU has become 17.77% cheaper. In February, the price for extra-grade milk in Ukraine was 30.55 eurocents per kg.
According to USDA data, the milk supply in Europe was significant at the beginning of the year, with raw materials flowing freely to dairy processing plants, which may explain the easing of purchase prices. According to AHDB estimates, low input costs and good feed quality contributed to the increase in milk yield volumes. Trade in European dairy products is being affected by new trade restrictions from China. The introduction of provisional duties on dairy products from the EU could make imports more expensive for China. A portion of European dairy products previously supplied to China may be reoriented to other markets, particularly the UK market.
However, as reported by Rabobank, raw milk production volumes are expected to decline in North-Western Europe over the next 5–10 years. This reduction in production poses challenges for processors who, following the abolition of quotas, invested heavily in capacity expansion, expecting further growth in milk yield volumes.
Among the main prerequisites for a future reduction in milk supply and an increase in purchase prices in Europe are strict EU environmental requirements regarding nitrogen, phosphate, and carbon emissions. Tightening rules for manure disposal and permit acquisition limits production expansion opportunities and raises farmers' costs.
Press service of the Association of Milk Producers
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