Global Milk Prices Ease on Expanding Supply
Global milk prices softened in September, reflecting sustained production growth across key regions. The IFCN World Milk Price Index declined 1.5% month-on-month, led by lower butter and skim milk powder (SMP) prices. In contrast, cheese markets strengthened, buoyed by resilient domestic and export demand.
Regional Drivers and Product Trends
- Butter: Prices fell under the weight of elevated milk supply and competitive U.S. export offers.
- Cheese: Prices climbed amid robust retail demand and stronger milk solids.
- SMP: Prices weakened as increased output in Oceania boosted global availability.
Expanding Milk Production
Production growth remains ahead of 2024 levels, supported by favourable weather conditions, high feed efficiency, and relatively strong farm margins. Expansion in North and South America is leading the trend, with the U.S. dairy industry registering exceptional component yields. The UK continues to perform strongly, while New Zealand’s seasonal outlook points toward further gains.
Market Outlook
The September decline signals a global market recalibration — with increased milk flows, stable consumption, and moderate price pressure across key commodities. Analysts view the dairy sector as fundamentally stable, with output growth expected to continue through late 2025 despite softer pricing dynamics.
Read more about IFCN World milk Price Indicator
The IFCN World Milk Price is a weighted average of three indicators — SMP & butter (32%), cheese & whey (51%), and WMP (17%) — reflecting quarterly global trade shares of these key dairy commodities.
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