Europe's Dairy Market Faces a Divided Outlook for the Second Half of 2026

European dairy is heading into the second half of 2026 carrying the weight of its own record production — and, in some corners of the market, struggling with acute scarcity. A historically strong milk flush across the EU-28, amplified by unusually high fat and protein content in milk fr om the Netherlands and Ireland , is intensifying supply pressure on butter and cheese. At the same time, a sharp reversal in global skim milk powder trade flows and explosive structural demand for whey proteins are pulling parts of the market in the opposite direction entirely. The divergence, detailed in Vesper's comprehensive H2 2026 Market Outlook covering 13 product categories, is the defining story of European dairy as the year crosses its midpoint. Abundant Milk, With a Twist European raw milk production delivered strong volumes throughout 2025, particularly in the second half of the year, and that momentum is carrying directly into 2026. The seasonal flush is expected to maintain significant ...