The European dairy market closed 2025 with sharply contrasting supply trends across its main product categories. Strong milk deliveries supported higher production of cheese and some milk powders, but butter supplies tightened as lower output and weaker imports reduced stocks. The mixed picture reflects how processors are directing available milk toward the most profitable products and export opportunities. Cheese emerged as the strongest-performing segment during the fourth quarter. Higher milk availability pushed cheese production up by 5%, while imports from EU suppliers such as Ireland, France, Spain and Denmark also increased. Export demand remained firm, particularly in Europe, Asia and the Middle East, helping total cheese exports rise 17% year-on-year to 54,800 tonnes. Even with stronger exports, cheese stocks still edged higher by 4% as supply outpaced demand. Butter moved in the opposite direction. Production fell by 4% in the final quarter of 2025 as lower wholesale ...