"Rabobank: milk prices in Europe may fall due to weak demand

Purchased milk prices across Europe, including Lithuania, could fall due to rising global milk production and weak dairy consumption, analysts at the Dutch bank Rabobank have forecast.

According to experts, milk prices are currently close to record highs in many European Union (EU) countries. In Lithuania, for example, the purchase price of natural raw milk in August was a quarter higher than in the same period last year, according to data from the EU Dairy Market Observatory.

Lithuania's milk price is estimated to have risen around twice as fast as the EU average this year. Similar trends have been recorded in the other Baltic countries.

„Rabobank“'s third quarter dairy report forecasts that global milk supply will increase by 2% in the second half of this year, driven mainly by production growth in the US, New Zealand and the EU. Meanwhile, demand for dairy products remains weak, with sluggish consumption also evident, which could lead to a fall in commodity prices, according to the bank's analysts.

Experts also note that while many EU farmers have recorded improved profitability in early 2025, optimism is tempered by uncertain market prospects linked to changes in trade tariffs between the US and the EU, a slowdown in Chinese consumption and uncertainty in Southeast Asian markets.