EU dairy commodity prices appear to have reached lowest point – Ornua

European dairy commodity prices appear to have reached their lowest point, with sentiment more positive than anticipated, Ornua has said.

Dairy prices seem to have stabilised it said, adding that positive market sentiment has been driven by strong Global Dairy Trade (GDT) results.

“Although European commodity prices have stabilised, some buyers remain cautious, aware that it will take time for the global milk supply to decrease,” the Kerrygold maker said in its February 2026 market report.

“Consequently, the extent to which prices can increase for the remainder of the first quarter is uncertain without clear signals indicating that supply is easing and/or demand has improved.

“Typically, demand tends to increase seasonally starting in the second quarter,” it said.

In order for there to be a lift in price this quarter, Ornua has advised that buyers will need clear signs that supply and demand fundamentals have improved.

Milk supply

Following an increase of 2.5% in 2025, global milk supply is expected to grow by approximately 1.0% in 2026, Ornua added.

“EU27 collections are projected to rise in the first half of 2026, before tapering off. Weekly data for January suggests that collections may be near peak."