Karnataka Milk Price Increase
The Karnataka government raised the price paid to milk producers by a modest amount, effective November 1. The hike is expected to lift retail milk prices and overall dairy costs in the state.
Raw Milk Price Trend Analysis 2026: Market Insights, Historical Prices, Price Drivers, Latest News & Supply Demand Analysis
Written BySiddharth David
Raw Milk Latest Development
Cheese Prices Surge After Low
Cheese prices fell to a multi‑year low, then rose sharply as supply tightening and strong export demand pushed prices higher. Dry whey also hit record highs amid growing demand for high‑protein products, indicating upward pressure on dairy product prices.
Raw Milk Price Trend Q3 2026
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Raw Milk | European Union | EXW | USD 479.50/MT | August 2026 |
| Raw Milk | India | EXW | USD 662.47/MT | August 2026 |
| Raw Milk | China | CIF | USD 753.26/MT | August 2026 |
| Raw Milk | Australia | CIF | USD 574.20/MT | August 2026 |
| Raw Milk | Germany | CIF | USD 479.50/MT | August 2026 |
| Raw Milk | European Union | EXW | USD 479.60/MT | July 2026 |
| Raw Milk | India | EXW | USD 662.47/MT | July 2026 |
| Raw Milk | China | CIF | USD 452.64/MT | July 2026 |
| Raw Milk | Australia | CIF | USD 549.96/MT | July 2026 |
| Raw Milk | Germany | CIF | USD 479.60/MT | July 2026 |
Stay updated with the latest Raw Milk prices, historical data, and tailored regional analysis
Raw Milk Price Trend Q3 2026
- Raw milk prices stabilised in Q3 2026 after a weak first half, with firmer global dairy markets supporting a gradual but uneven recovery across regions.
- Feed costs rose on dairy farms and squeezed farmer margins, while strong milk output in some major producing countries kept overall supply comfortable.
- Demand for milk powders improved in global trade and supported farm-gate prices, although weaker consumer dairy spending in China limited the pace of recovery.
In the European Union, the average price of Raw Milk held steady at approximately USD 479.60/MT (EXW) the first two months of the Q3’26. In Australia, average prices rose about 4.4%, from ~USD 549.96/MT (CIF) to ~USD 574.20/MT. European prices stayed stable through mid-quarter, but farm-gate prices in Northwestern Europe then began rising month after month, and leading cooperatives raised their base prices for autumn. In Oceania, stronger global dairy auction results, especially for milk powders, led New Zealand's largest dairy cooperative to raise its milk price forecast in September, which supported Australian values. In the US, plentiful supply kept pressure on prices, with milk production forecast at 237.2 billion pounds this year (according to USDA), while rising feed costs squeezed farm margins. In China, a dairy herd 4.3% smaller than a year earlier helped prices stabilise, although weak consumer spending limited gains.
Analyst Insight
According to Procurement Resource, in the near term, raw milk prices are likely to firm gradually as global dairy demand improves, though strong output in some regions may slow the recovery.
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- Raw milk markets showed mixed movement during H1 2026, with European prices weakening while Asian markets remained comparatively stable.
- Lower soybean meal and feed costs eased production pressure in parts of Asia, while European farm margins remained under strain.
- Dairy processing demand remained steady, but adequate milk availability and cautious procurement limited stronger price support.
In the European Union, Raw Milk was assessed at around USD 426.00/MT in June, the closing month of the second quarter of 2026. European raw milk conditions weakened through H1 as adequate milk availability and subdued processor purchasing reduced producer bargaining power. The EU weighted-average producer milk price fell by about 6% between January and May, reflecting sustained supply pressure. Within China, the Raw Milk market was recorded at roughly USD 519.00/MT in June, the final month of Q2 2026. In the region, conditions were much steadier as improving feed economics reduced pressure on dairy farms and the year-on-year decline in raw milk narrowed considerably through June. Across India, prices of Raw Milk stood at approximately USD 653.00/MT during June 2026. India remained firmer due to steady dairy consumption, procurement requirements from processors and higher production and collection costs. Demand from fluid milk, cheese, butter and other dairy products provided a stable consumption base across Asia.
Analyst Insight
According to Procurement Resource, raw milk prices are expected to remain mixed, with European supply keeping prices under pressure while stable Asian dairy demand provides support.
About Raw Milk
Raw milk basically refers to unpasteurised milk, that is, the milk which has not been through the process of pasteurisation or homogenisation. It is a method of heating liquid foods in order to decontaminate them and kill microorganisms for safe drinking. The components of raw milk are safe for its consumption and other uses.
Raw Milk Product Detail
Industrial Uses
Cheese, Butter , Yoghurt, Ice Creams, Sweets, Custard, Cosmetics
Supplier Database
Nestle SA, China Mengniu Dairy Company Limited , Lactalis Group, Dairy Farmers of America, DMK Deutsches Milchkontor GmbH
Regional Coverage
Asia Pacific
China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe
Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America
United States and Canada
Latin America
Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa
South Africa, Nigeria, Egypt, Algeria, Morocco
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Raw Milk Production Processes
Raw Milk, as secreted by mammals like cows, buffaloes and goats is free of micro-organisms. Raw milk is further processed and refined for commercial use. The milking enterprise complements other agricultural enterprises within a farming system.
Our Price Analysis Methodology
About the Author
Siddharth David
Manager - Market Research
Delivering market research and procurement intelligence at Procurement Resource with a focus on economic forecasting, commodity analysis, and client advisory to help sourcing teams make data-backed purchasing decisions.
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