According to recent data from the EU Milk Market Observatory, December 2025 saw a notable decrease in milk purchase prices across major dairy exporting nations including Belgium, Denmark, Ireland, Lithuania, and the Netherlands, with prices plummeting by approximately a quarter year-on-year. The average EU purchase price for milk was reported at 48 cents per kilogram, reflecting a 12% decline compared to the previous year, and early indications suggest that this downward trend continued into January 2026.

Analysts note that starting from September 2025, the prices of traded dairy products, particularly butter and skimmed milk powder, have been steadily declining in European markets. The downward price trajectory persisted through the last quarter of the previous year, largely attributed to an oversupply of milk and sluggish demand in key export markets. This situation has prompted concerns among dairy producers as they grapple with the impact of these market dynamics on profitability.

The most drastic price drops were observed in the Netherlands, where prices for raw milk fell significantly. This ongoing trend raises questions about the sustainability of the dairy sector in these exporting countries and highlights the need for long-term strategic planning to address the inherent challenges of market volatility and demand fluctuations.