Europe Milk Glut Sparks Price Crash Fears

The European Milk Board has issued a stark warning of a potential milk price collapse as record milk volumes flood global markets, with president Kjartan Poulsen stating that “if no action is taken now, we are heading straight into a milk price collapse.”

The EMB highlighted that the surge in production—driven by strong output across Europe and globally—has created unprecedented market pressure, prompting urgent calls for intervention. Vice-president Boris Gondouin specifically urged key countries including Germany, France and Denmark to support decisive action, warning that continued hesitation could trigger another price crash and widespread farm losses.

The board is advocating for an EU-wide voluntary milk production reduction scheme, offering farmers a fixed payment per litre of milk not produced to stabilise supply and prevent further price decline.  Meanwhile, the Irish Creamery Milk Suppliers Association has pressed Agriculture Minister Martin Heydon to clarify Ireland’s position ahead of the Council of Ministers meeting on 27 April in Brussels, noting that seven member states are already backing the proposal.

ICMSA president Denis Drennan emphasized that despite recent base price increases, returns remain below production costs, leaving farmers financially strained. He pointed to the success of the 2016 supply reduction scheme, which helped rebalance markets and lift prices, and warned that failure to act now could lead to severe consequences for dairy farmers and Europe’s food security.

Source: Dairynews7x7 27 April, 2026 Read full story here

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