It is too early to conclude that there is a crisis in the milk market, European Commissioner for Agriculture Christophe Hansen has said.
He told EU farm ministers last week that global demand for dairy products remains very robust, with solid market outlets for EU production.
“The market sentiment has significantly weakened in the last months of 2025 and, as discussed at our latest meeting in December, we are indeed witnessing a sharp correction for certain dairy products, particularly butter and milk powder.
“This comes after a period of very high prices. As dairy commodity prices continue to decline downward, pressure is starting to impact the prices paid to farmers,” he said.
Price stabilisation
Over the past three weeks, butter and skimmed milk powder prices have somehow stabilised, he told ministers.
“It remains to be seen whether this marks the end of the current trend or if it is a pause in the downward trend,” he said.
Turning to production, the commissioner said that EU milk deliveries were broadly stable until September, but production increased notably in some major producing countries.
“This reflects a combination of factors, including feed availability, favourable weather conditions and also improved margins.
“It is too early to conclude that there is a crisis in the milk market. Global demand for dairy products remains very robust, providing as well solid market outlets for EU production,” he said.
He said the European Commission will strengthen its market monitoring and that he stands ready to act, including using all the tools available, to stabilise the market in the Common Market Organisation if the situation requires it.
“In addition, dairy will be part of our health check of the market situation that we will conduct together with your experts and the sector in the coming months,” he added.
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It is too early to conclude that there is a crisis in the milk market, European Commissioner for Agriculture Christophe Hansen has said.
He told EU farm ministers last week that global demand for dairy products remains very robust, with solid market outlets for EU production.
“The market sentiment has significantly weakened in the last months of 2025 and, as discussed at our latest meeting in December, we are indeed witnessing a sharp correction for certain dairy products, particularly butter and milk powder.
“This comes after a period of very high prices. As dairy commodity prices continue to decline downward, pressure is starting to impact the prices paid to farmers,” he said.
Price stabilisation
Over the past three weeks, butter and skimmed milk powder prices have somehow stabilised, he told ministers.
“It remains to be seen whether this marks the end of the current trend or if it is a pause in the downward trend,” he said.
Turning to production, the commissioner said that EU milk deliveries were broadly stable until September, but production increased notably in some major producing countries.
“This reflects a combination of factors, including feed availability, favourable weather conditions and also improved margins.
“It is too early to conclude that there is a crisis in the milk market. Global demand for dairy products remains very robust, providing as well solid market outlets for EU production,” he said.
He said the European Commission will strengthen its market monitoring and that he stands ready to act, including using all the tools available, to stabilise the market in the Common Market Organisation if the situation requires it.
“In addition, dairy will be part of our health check of the market situation that we will conduct together with your experts and the sector in the coming months,” he added.
Read more
Tirlán rises to the top in December
Speculation that Dairygold will sell UK business
Dairy Trends: butter continues to drop in price
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