1. Weekly News

Brazil

Milk Prices in Rio Grande do Sul Drop in Jun-25 as 2025 Trend Deviates from Historical Patterns

In Jun-25, the Parity Council of Milk Producers and Industries (Conseleite) projected the reference price for milk in Rio Grande do Sul at USD 0.45 per liter (BRL 2.4228/L), reflecting a 0.88% decline from the May-25 projection.

The final price for May-25 was USD 0.45/L (BRL 2.4332/L), marking a 3.36% drop from Apr-25. Despite overall market stability, Conseleite noted that the 2025 price curve deviates from historical trends, suggesting potential market adjustments ahead.

Indonesia

Indonesia Imports 1,573 Australian Dairy Cows to Boost Milk Production and Support Food Self-Sufficiency Goals

The Agriculture Ministry of Indonesia (MOA) has imported 1,573 dairy cows from Australia to enhance milk production and improve domestic farmer productivity. Of these, 1,088 cows arrived at Tanjung Tembaga Port, East Java. This initiative supports the Indonesian President's flagship free meal program. It also aligns with the government's goal to increase the national dairy cow population to one million by 2029, a key step toward achieving food self-sufficiency.

Russia

Bashkortostan Reports 371.8 Thousand MT of Milk by Late Jun-25

As of June 25, 2025, the Republic of Bashkortostan recorded a gross milk yield of 371.8 thousand metric tons (mt) in agricultural organizations and peasant farms. The Chekmagushevsky district led production with 41.5 thousand mt, followed by Aurgazinsky with 34.8 thousand mt, and Ilishevsky with 28.7 thousand mt. Daily milk yield reached 2.2 thousand mt, with an average of 21.8 kilograms (kg) per cow, 0.6 kg higher than last year. The highest productivity was observed in Belebeevsky with 35.7 kg per cow. The total dairy cow population stood at 111.7 thousand, with Chekmagushevsky maintaining the largest herd.

South Korea

South Korea's Dairy Sector Advances Sustainability with New Milk Collection Efficiency Agreement Aligned to MAFRA's Food Security Plan

On June 23, the Korea Dairy Promotion Association (KDPA) and 11 dairy-related organizations signed a business agreement to enhance the efficiency of milk collection routes, aiming to improve raw milk quality, reduce logistics costs, and strengthen the dairy industry's sustainability. This initiative is aligned with the Ministry of Agriculture, Food and Rural Affairs' (MAFRA) Mid- to Long-Term Development Plan, announced in Dec-22, which seeks to mitigate food security risks arising from extreme weather events and international market disruptions. The plan focuses on stabilizing the supply and demand of major agricultural commodities during crises. Pilot implementation of the milk collection route efficiency program will commence in Jul-25, with a nationwide rollout planned for 2026. Enhancing route efficiency is expected to improve raw milk freshness, reduce fuel consumption, and lower logistics costs, thereby enabling increased investment in research and development and product innovation. Ultimately, this will support the sustainable growth and structural advancement of the domestic dairy industry.

South Korea's “Milky Way” Project Boosts Nepal's Dairy Sector with High-Yield Holstein Heifers and Sustainable Farming Practices

Three years after South Korea donated high-yield Holstein heifers to Nepal's Kamalamai district under the "Milky Way" project, significant improvements in milk production and household income are evident. A collaboration between South Korea's MAFRA, the National Agricultural Cooperative Federation (NACF), and Heifer Korea, a global nonprofit organization dedicated to ending hunger and poverty through sustainable agriculture, the initiative aims to enhance Nepal's dairy sector, which contributes 9% of the country’s gross domestic product (GDP). Supported with training and veterinary services, recipient farmers now raise Korean cows that produce five to six times more milk than local breeds. The project fosters sustainability through the “Passing on the Gift” program, encouraging farmers to donate calves to neighbors.

Ukraine

Ukraine's Raw Milk Prices Decline in Jun-25 Amid EU Quota Reinstatement and Export Uncertainty

In late Jun-25, Ukraine experienced a slight decline in raw milk prices due to weak domestic demand and reduced exports following the European Union's (EU) reinstatement of quotas and tariffs. As of June 23, the average purchase price for extra-grade milk was USD 0.38/kg (UAH 16/kg). This excludes value-added tax (VAT), which is down USD 0.0041/kg from the previous month, with similar modest declines across other milk grades. The export reduction stems from the cancellation of autonomous trade measures that had previously allowed tariff-free access to EU markets. Export volumes in Jun-25 dropped to their lowest in a decade. The future price trajectory depends on ongoing negotiations between Ukrainian authorities and the European Commission (EC) regarding quota increases or removals. Without expanded quotas, exports may shift to less stable markets, leading to domestic surplus and potential price decreases in fall and winter. Conversely, increased quotas or tariff removals could sustain high export demand and support higher raw milk prices later in Jul-25.

2. Weekly Pricing

Weekly Powdered Milk Pricing Important Exporters (USD/kg)

Yearly Change in Powdered Milk Pricing Important Exporters (W26 2024 to W26 2025) 

Germany

In W26, Germany's milk prices decreased by 1.27% week-on-week (WoW) to USD 3.12/kg, while marking an 11.03% year-on-year (YoY) increase from USD 2.81/kg. This recent decline follows a trend observed in Apr-25, where farmgate milk prices rose month-on-month (MoM) due to supply constraints and rising production costs in the German dairy sector.

The current price drop may be attributed to several factors, including a reduction in EU milk production by approximately 1.8% in Q1-2025, driven by a decrease in the number of dairy cows, disease outbreaks such as bluetongue, and structural challenges like labor shortages and environmental regulations.

Netherlands

In W26, the Netherlands' milk prices declined by 1.42% WoW to USD 2.77/kg but remained significantly higher by 24.77% YoY from USD 2.22/kg. This substantial annual increase is driven by tightening supply conditions, including a 3% drop in Q1-2025 milk production due to smaller herd sizes, labor shortages, reduced farm profitability, and ongoing climate challenges. Despite these production constraints, strong export demand from key markets such as China and Southeast Asia continues to support elevated prices. Additionally, concerns over Foot-and-Mouth Disease (FMD) outbreaks in parts of Europe may further limit milk supply, sustaining upward pressure on prices.

France

France's milk prices rose sharply by 15.29% WoW to USD 2.79/kg in W26, reflecting a 16.74% MoM increase and a 22.28% YoY gain. This notable price surge coincides with the country's first confirmed outbreak of lumpy skin disease (LSD) in the Savoie region. The disease, which significantly reduces milk production in affected cattle, has led to restrictions on cattle movement within a 50-kilometer (km) radius to contain its spread. While LSD poses no risk to humans, its impact on livestock health and resulting trade restrictions are expected to constrain milk supply further. Consequently, these developments are likely to sustain upward pressure on milk prices in the near term, with potential volatility depending on the disease’s containment and broader market responses.

3. Actionable Recommendations

Strengthen Herd Productivity and Genetic Improvement Programs

Countries aiming to increase milk production, such as Indonesia and Nepal, should continue investing in high-yield dairy breeds combined with comprehensive farmer training and veterinary support. This approach boosts per-cow productivity and sustainability, supporting national food security and rural incomes.

Enhance Supply Chain Efficiency and Logistics

Dairy industries, particularly in South Korea and similarly structured markets, should prioritize optimizing milk collection routes and cold chain logistics to improve raw milk quality, reduce costs, and enable greater investment in product innovation. Pilot programs should be rigorously evaluated and scaled nationwide to strengthen industry resilience.

Mitigate Export Risks and Stabilize Domestic Prices through Trade Negotiations and Market Diversification

Producers in export-dependent markets like Ukraine should actively engage in negotiations to expand or remove export quotas with key trade partners (e.g., EU). Simultaneously, diversifying export destinations and developing domestic value-added products can reduce vulnerability to tariff reinstatements and market fluctuations, helping stabilize farmgate milk prices.

Sources: Tridge, Agro Link, Spec Agro, AgriNet, Agravery, The Korea Herald, The Jakarta Post, MSN