European powder markets have strengthened considerably, led by a sharp rally in SMP. Despite higher production, expanding exports have helped absorb additional volumes, while prices reached their highest level since 2022. Europe’s narrowing price advantage is also bringing international competitiveness into focus.
According to DCA Market Intelligence, food-grade SMP stood at €3,205 per ton on September 10, up 9.6% over the previous month and 44.4% year-over-year (YoY). Feed-grade SMP increased to €3,225 per ton (+41.1% YoY), moving slightly above food-grade SMP. Strong annual gains also continued across the whey complex, with sweet whey powder food and feed respectively 79% and 94.4% above last year at €1,880 and €1,750 per ton. Lactose stood at €1,670 per ton (+59% YoY).
Whole milk powder (WMP) remained the main exception to the strong annual increases. At €3,750 per ton, prices were up 5.2% over the previous month but remained 1.3% below last year.
SMP production outpaces growth in milk supply
Through July, European milk production followed an upward trend, providing more raw material for processing. Germany reached 20.16 million tons (+6.4% YoY), while France produced 14.66 million tons (+2.2%). Production also increased in the Netherlands (+4.5%) and Poland (+3.1%), while Ireland remained more stable at 5.80 million tons (-0.4%).
SMP appears to have particularly benefited from the additional milk supply. EU production increased by 11.7% YoY to 865,019 tons in H1. Germany produced 218,020 tons (+15.7%), while Poland (+21.6%) and Ireland (+19.4%) also expanded strongly. In contrast, Dutch production declined by 7.0%. Yet, this growth was not shared across the wider powder market, as milk and cream powders excluding SMP declined by 3.4%, indicating different allocation across powder streams.
For whey powder, production is closely linked to cheese manufacturing, as whey is a by-product. EU cheese production increased by 3.5% to 5.20 million tons in H1, supporting greater whey availability. In Germany, where direct whey powder data is available, output increased by 5.3% to 193,170 tons.
EU powder trade strengthens, led by SMP
EU milk powder trade strengthened in the first five months of 2026. SMP trade increased by 13.5% YoY to 286,920 tons intra-EU and by 10.6% to 367,628 tons extra-EU. Germany remained the largest intra-EU supplier at 89,922 tons (+11.8%), while France increased by 31.3% to 51,790 tons and Poland by 35.3% to 19,662 tons. Extra-EU trade was led by Belgium at 70,803 tons, followed by Germany at 66,222 tons (+21.8%) and France at 62,469 tons (+16.4%).
