Milk in key exporting regions
%-change versus previous year
Europe
Cream finds its way to the market but SMC is difficult to sell
Since output volumes are seasonally increasing again, spot milk prices remain under pressure. Ireland seems to have a slow start of the season due to wet and cold weather but on the continent and in the UK year-on-year production increases remain in the range of 3-6%. Spot milk yields some EUR 0.10-0.12 per kilogram in Netherlands, EUR 0.07-0.09 in Belgium and EUR 0.12 in Germany. In France prices dropped to EUR 0.07 although Spain and Italy continue to buy. Spanish buyers purchase at around EUR 0.15 delivered. In Italy delivered prices are around EUR 0.26. Cream prices are steadily rising to a level of EUR 5.20 in early March as cream and butter find their way to the market. For skimmed solids however, it is difficult to find a home.
Americas
No signs of US milk production slowing down
The US continues to report strong milk production and high content levels. Production was 3.2% up year on year in January and signs of herd reductions are as yet absent. It has to be noted though that heifer replacement is low. This implies that milk production needs the fuel of low feed prices driving cow productivity. Another source of sustained growth will be that the average age of cows increases as they are kept for more lactations than usual.
Asia-Pacific
Oceania production remains strong in the shoulder of the season
Since December Australia milk production is no longer going backwards year-on-year. So combined with the equally strong shoulder of the New Zealand season Asia Pacific buyers can be assured that their preferred dairy origin remains ready to deliver until the end of the season. Farmer cash flows have remained healthy through the season, and farmer confidence for next season has only improved due to the strong results of essentially all 2026 GDT sessions.
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