19.
12.25
Market development milk market week 51

Milch News, 19/Dec/2025

Bullish
  • Segments such as whey and special dairy products remain relatively stable or robust despite price pressure in the fat segment.
  • Parts of the industry (e.g. cheese and dairy exporters) see market opportunities in South American markets - possible export diversification is being discussed.
  • At the end of the year, demand for cheese & milk fat products typically increases (baking/festival days), which can have a short-term supportive effect.
Bearish
  • EU average prices fall (butter ~461 €/100 kg, SMP ~202 €/100 kg).
  • Farmers protest against butter/milk price dumping, pointing to social tensions and structural price problems.
  • High supply volumes without a corresponding shortage of demand depress prices.
  • Discounters are forcing price cuts that depress wholesale prices and producer prices.
  • Controversies surrounding EU-Mercosur, possible imports of cheaper agricultural products - risk for competition and local prices.

Price trends & market pressure - Europe & Germany

Declining market prices in general

Current EU average data shows that dairy products remain under price pressure:

  • Butter price in the EU was ≈ 461 €/100 kg in the week ending 14.12.2025, a significant decline compared to previous months.

  • Prices for SMP (skimmed milk powder) are quoted at ≈ 202 €/100 kg (also declining).

  • WMP (whole milk powder) and cheese processing values are also lower than a year ago.

👉 These figures reflect the continued pressure on prices for fat-containing products - a core problem of all current protests.

Strong competition in retail & price war

  • Retailers are aggressively cutting butter and cheese prices, putting further pressure on wholesale prices in Germany.

  • German wholesale quotes reported a price range of around €5.10 - €5.60/kg for butter in November - a significant drop compared to previous weeks.

Supply-demand imbalance

Market comments and industry analyses show:

  • High milk supply in EU/Germany exceeds seasonal expectations.

  • Demand, particularly in exports and out-of-home consumption, remains stagnant or weak.

  • This leads to a classic supply surplus, which depresses prices. top agrar

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ZMP Live Expert Opinion

The European dairy market is currently experiencing price and structural stress:

  • Demand is not providing sufficient relief for the high supply - prices for butter, SMP and other processed products continue to fall.

  • Trade tensions (e.g. EU-Mercosur) and protests are making the situation politically and economically sensitive.

  • Bullish year-end impulses (season, functional milk segments) offer selective opportunities, but can only offset the broad downward trend to a limited extent.

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