Anhydrous Milk Fat Price Trend Analysis 2026: Price Drivers, Supply Demand Analysis, Market Insights, Historical Prices & Latest News

Anhydrous Milk Fat Price Trend 2025

Asia

In Asia, prices for AMF were firm throughout 2025. In the first half, prices slightly increased due to the increased demand from dairy processors and food manufacturers. In Australia, moderate support for prices of AMF was noted due to favorable seasonal milk production and export opportunities. In the second half of the year, prices for AMF increased due to the need for holiday demand. Favorable weather conditions resulted in farm margins, keeping the prices firm.

Europe

European AMF prices had mixed movements during 2025. In the first half, prices were relatively stable, with an increase in milk production, albeit at a gradual pace, and processors paying relatively stable prices to maintain their supplies. In the second half, however, prices were affected by an increase in global milk supplies, along with declining commodity values, especially for butter and cheese. Competition from imported products, along with declining wholesale prices for dairy commodities, impacted AMF prices. Organic AMF prices performed slightly better than conventional ones due to their relatively high demand and input costs. Overall, prices declined during the second half.

North America

AMF price levels in North America exhibited contrasting trends in the US and Canada. In the US, production has been steadily increasing over the course of the year, contributing to global supply and thereby exerting a downward pressure on AMF prices in the latter half of 2025. In Canada, AMF price levels have been sustained through changes to farmgate pricing levels, reflecting increases in production costs and the need to sustain farmer margins.

Analyst Insight

According to Procurement Resource, Anhydrous Milk Fat (AMF) prices are expected to remain relatively stable in the near term, influenced by global milk production and seasonality.