EU Dairy Prices Slide, Butter Falls 16.6%

Dairy prices across the European Union have recorded a year-on-year decline, with butter and other milk-derived oils and fats falling sharply by 16.6%, while cheese prices declined 2.3% between June 2025 and June 2026, according to Eurostat data released on August 13, 2026. The figures are based on the Harmonised Index of Consumer Prices (HICP), which tracks changes in consumer prices across 27 EU countries.

The decline is also visible in Ireland, where average prices of butter and milk decreased in July 2026. Ireland's Central Statistics Office (CSO) reported that the national average price of 2 litres of full-fat milk fell by €0.09 year-on-year, while the price of one pound of butter declined by €0.55 and the average price of Irish cheddar cheese fell by €0.09/kg.

The dairy-price decline comes despite broader inflationary pressure in Ireland. The country's Consumer Price Index (CPI) increased 3.4% between July 2025 and July 2026, the same annual inflation rate recorded in June, while CPI excluding energy and unprocessed food rose 3.2% over the 12-month period. Consumer prices increased a further 0.1% between June and July 2026.

The latest figures highlight a contrasting trend for the European dairy sector: overall consumer prices remain under inflationary pressure, while key dairy categories—particularly butter—are experiencing significant price declines. For dairy processors, farmers and market participants, the movement in butter and cheese prices will remain important for margins, procurement economics and market positioning.

Eurostat's HICP data is compiled using the European Classification of Individual Consumption According to Purpose (ECOICOP). Eurostat works with EU countries to develop common methodologies and ensure comparability, while data collection and validation are largely carried out by national statistical authorities under EU regulations and standards. (Agriland)

Source: Dairynews7x7 17 Aug, 2026 Read full story here

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