Basic data & market development - as at 27.11.2025
Raw milk / producer prices
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According to the latest data, the weighted average price for raw milk (EU-27) is ≈ €52.91/100 kg (provisional for October 2025).
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Compared to the previous year, the farm-gate price thus remains at a relatively high level, although the price trend in fall 2025 appears to be stable to slightly declining - which could indicate declining demand or structural market uncertainties.
Butter & fat products
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According to CLAL price data, EU butter prices were listed at €5,713/t in November 11, 2025 (EU average, 82% butterfat).
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The price has thus weakened noticeably compared to the highs of 2024/2025 - which has to do with oversupply and falling demand. Market reports comment that the fat segment is under pressure.
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According to a market update from November 13, 2025, the decline in butter and cream is interpreted as a reflection of increasing milk production and declining demand for solid fats.
Cheese / milk fat utilization & powder products
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For cheese and powder (e.g. skimmed milk or whole milk powder), current reports indicate further declining prices or at least a stable mood with a volume surplus. Fat products in particular are currently experiencing market pressure.
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The decline in butter and fat is also likely to put pressure on cheese and powder processing, as processors are achieving lower margins - potentially falling demand and inventory build-up can be observed.
Production / supply situation & market sentiment
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According to a forecast by the Agricultural and Agribusiness Market (2025), milk volumes in the EU are expected to remain stable - despite regional differences and possible declines in cow numbers in individual countries.
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However, market commentaries are increasingly pointing to a structural risk for fat products: High production coupled with falling demand
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The mood on the market is currently cautious to negative - many market participants are pricing in falling prices, particularly for butter and other fat products.
ZMP Live Expert Opinion
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The stable raw milk prices currently still offer relative earnings security for milk producers. However, the pressure on fat and processing markets could also have an impact on farm-gate prices in the medium term.
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The butter segment (and fat products in general) is under pressure to clarify: prices have fallen, demand appears to be weaker, supply stable or rising - this suggests a phase of consolidation or downward correction.
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There is increased caution for cheese and powder products: the price pressure in the fat segment is having an indirect effect here, and markets could become more volatile.
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Market sentiment is currently "wait-and-see to cautious" - many market players are holding back and prefer safety or hedging strategies.
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