European dairy commodities drop to four-year low

European dairy commodities drop to four-year low

Prices at the weekly Dutch Dairy Board auction took another significant hit on Wednesday.

Butter dropped a further €250/t, taking it back to €4,070/t. It means in just five months, over 44% has come off the price of European butter.

In early July, butter was priced at €7,300/t. It is now at its lowest price since September 2021.

Whole milk powder (WMP) price is also in retreat, falling €30 to €3,070/t on Wednesday. That price is down 30% from its peak in April 2025 of €4,380/t. The latest price is the lowest recorded for WMP since July 2021.

At Wednesday’s auction, the price of skim milk powder fell €60 to €2,010/t and it is now down 22% from a peak of €2,570/t in the early part of this year.

Back in 2021, the average price paid to NI farmers was around the 30p/l mark.

Letter

Meanwhile, the four UK farming unions have written an open letter to dairy processors urging responsible behaviour during what is expected to be a particularly testing period for the dairy sector.

“We need to see greater openness, transparency and genuine collaboration within milk pools. This is essential to ensure a sustainable future for dairy farmers,” said UFU dairy chair, Cyril Orr.