Milk in key
exporting regions
“Other EU” is the change in the aggregated milk production volume of all other EU member states except for the ones displayed individually in this graph. The individual countries displayed usually have finalised figures for the most recent months, but the other EU category inevitably has a higher degree of estimation.
Europe
September may be the last month with a plus in milk production compared to last year
More and more EU-countries are having trouble matching last year's production volumes. As of November we will almost certainly see milk volumes fall below last year while October will probably end up around 0%. Spot milk prices are dropping below pay out prices again. In the Benelux spot milk is priced at EUR 0.44-0.45/kg. In Germany prices are slightly higher at EUR 0.45-0.46, while in France most spot milk is sold for EUR 0.42-0.43. The spreads in cream and skimmed solids are a bit higher than normally this time of the year. Cream is priced at EUR 4.70-4.80/kg, while SMC trades at EUR 3.10-3.20/kg. When we get closer to Christmas commodity production is expected to become economically viable again.
Americas
Milk production still strong but many interesting dynamics in dairy liquids
By now it should not be a surprise that the strong demand for proteins is creating some interesting dynamics inside the dairy portfolio. At the source milk supply is still abundant across the USA but all the milk is finding a home at good levels – with the exception of California which feels somewhat looser than the rest of the country. What is interesting in the liquids market is that it is still remarkable how tight cream supply is. After the historically challenging year of 2025 with more dan abundant cream supply most market participants decided to rely on the spot market in 2026. Despite the overall weakness in the milk fat market this caused the cream market to remain tight for many months already. The economics of butter production remain strong, owing partly to the high returns on the buttermilk powder. Cream multiples range between 1.15 on the West Coast to 1.30 in the markets on the East Coast. Condensed skim and UF liquids are still in high demand while supply feels tight but given all the new capacity coming online it will be interesting to see how prices will develop in Q1 of 2027.
Asia-Pacific
Oceania sails smoothly through the first half of the season but LatAm feels the first weather disruptions
Oceania maintains strong output levels throughout the season’s peak. Fonterra even increased its forecasted pay-out price for the season recently, so the positive sentiment amongst dairy farmers will only improve. El Nino has not been able to spoil the first half of the season on the Southern hemisphere but farmers in Argentina, Urugay and the South of Brazil are experiencing heavy rains currently, which is already starting to affect milk production and may be regarded as an early indication of more El Nino disruptions to come in December and January.
Need market insights or sourcing milk?
Speak with your local Interfood specialist
Our team closely monitors global dairy markets and works with a wide network of milk suppliers. Whether you need market insights or reliable milk supply, Interfood specialists are ready to help you navigate the market.
Contact us
More insights
If you're interested in Milk, you may also like these topics:
