
Drought, high demand and the El Niño effect are putting pressure on the milk market
AI-generated summary
Milk prices fell sharply at the end of 2025, leading to protests from farmers. Periods of drought and high demand for proteins are currently driving the market back up.
The dairy industry association expects the prices for milk, yoghurt and quark to rise significantly. The association spoke of significant price increases that were urgently needed.
From the association's point of view, several factors speak for rising prices: Sales of milk and milk products are going extremely well. In addition, the summer drought in Germany and Europe caused milk deliveries to plummet regionally.
Butter prices are rising again
Many experts also expected a strong El Niño effect in the tropical Pacific to significantly weaken global milk deliveries. The El Niño effect may cause droughts in key dairy export regions.
The first signs of a turnaround have already been seen with butter recently: after a sharp price drop at the end of 2025, which temporarily pushed butter below the mark of one euro per 250 gram packet and prompted farmers' associations to protest, the price rose again.
The protein boom also plays a role, says Kerstin Keunecke from Agrarmarkt Informations-Gesellschaft (AMI). Whey protein concentrates are currently in high demand.

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