The average European milk price rose for a third consecutive month in July, though only just. Dutch analysts ZuivelNL put the average base price before bonuses at €38.35 per 100kg, 15 cents above June; with bonuses the average paid by processors was €40.26/100kg, up €0.10 or 0.3% on the month but still almost 20% below July 2025.

ZuivelNL, set up by the Dutch dairy and farming organisations in 2014 to track prices across Europe, calculates prices per 100kg of standard milk at 4.2% fat and 3.4% protein, excluding VAT. Of the three Irish co-ops in its survey, only Tirlán came in above the European average once bonuses were counted: a base price of €36.97 plus a €0.50 Sustainability Action Payment gave €40.36, ten cents above the average. Dairygold's base price rose for a third month, by €0.51 to €37.78, or €39.43 with its sustainability bonuses; Tirlán's base price with fat and protein gains reached €38.32, or €38.44 with the SDAS payment.

A handful of processors raised prices sharply, the report said, singling out Arla, DMK and Saputo. Arla's rise was driven by higher fat and protein values; Saputo Dairy UK lifted fat and protein prices 5% in July, as in June, helped by exchange rates. In the United States the milk price fell further on weaker fat and protein.

EU milk deliveries have slowed since April but remain high, with strong growth again in Belgium, Germany and the Netherlands. Poland's supply declined for the first time in years, and the report called the fall in Irish deliveries since April "noteworthy".

Heatwaves and drought across much of Europe caused a temporary dip in deliveries that nudged butter prices up slightly, though ample stocks still limit further gains. Skimmed milk powder stabilised in early July after a June dip, then rose sharply from mid-month on strong world demand, with Europe the most attractive supplier for many destinations; at the end of August the quotation passed the €3,000-a-tonne mark for the first time since 2022.

Source: Agriland