Global dairy markets entered 2026 under renewed pressure as milk production continued to expand across nearly every major exporting region. According to Rabobank and industry analysts, steady growth in the United States, Europe, New Zealand, Brazil and Argentina has created abundant dairy supplies, pushing commodity prices sharply lower during the first quarter of the year. The steepest declines have been recorded in fat-based products. Between September and February, butter and anhydrous milk fat markets fell by around 40%, while whole milk powder dropped roughly 30%. Protein-focused products such as skim milk powder, cheese and whey proved more resilient, but still declined by about 15%. The latest Global Dairy Trade event also turned negative after six months of gains, led by an 8.1% drop in butter prices. The United States remains the main driver of global milk growth. U.S. production is expected to rise by 2% this season, supported by the country’s largest dairy herd since ...