IFCN Combined World
Milk Price Update

Global dairy commodity markets showed mixed trends in September 2026, according to the latest IFCN dairy market update.

In Oceania, butter prices declined under pressure from strong global competition, ample market supply and existing stocks. The main pressure comes from the United States, where butter export volumes remain strong and prices are significantly below those in Oceania and the EU. Cheese prices were comparatively stable, with only a moderate decline. In contrast, milk powder prices – particularly skim milk powder (SMP) – rose strongly in September, driven by strong demand for protein commodities and solid import demand.

Meanwhile, global milk supply growth appears to be slowing compared with previous months. However, the slowdown is not yet strong enough to give milk prices more support. Oceania’s milk production is above last year’s level and rising along the seasonal production curve. In the EU, milk production growth has slowed because summer heatwaves reduced both volumes and milk solids, and because 2025 was a strong year to compare against. Milk production in the US and Latin America continues to grow.

The volume of milk already in the market should not be underestimated. Together with existing and anticipated stocks, it is putting a ceiling on further increases in global milk prices.