For the Quarter Ending March 2026
Anhydrous Milkfat Prices in North America
- In United States, the Anhydrous Milkfat Price Index rose quarter-over-quarter in Q1 2026, driven by surging feedstock costs.
- The Anhydrous Milkfat Production Cost Trend increased in March 2026, supported by a 4.0% rise in PPI.
- Retail sales grew 4.0% in March 2026, while a 3.3% CPI increase impacted domestic retail butterfat demand.
- The Manufacturing Index expanded and industrial production grew 0.7% in March 2026, supporting the Anhydrous Milkfat Demand Outlook.
- A 4.3% unemployment rate and 91.8 consumer confidence index in March 2026 sustained baseline dairy product consumption.
- Export demand for anhydrous milkfat to the Middle East and Southeast Asia strengthened significantly in Q1 2026.
- Despite expanded domestic milk supply, inventories for premium butterfat tightened across the United States in Q1 2026.
- The Anhydrous Milkfat Price Forecast trended upward in Q1 2026 as electricity costs strengthened alongside surging spot cream.
Why did the price of Anhydrous Milkfat change in March 2026 in North America?
- Spot cream feedstock costs surged significantly across the United States dairy market in Q1 2026.
- Export demand for anhydrous milkfat strengthened considerably, tightening available premium butterfat inventories in Q1 2026.
- A 4.0% rise in PPI during March 2026 reflected elevated input costs for dairy processing.
Anhydrous Milkfat Prices in APAC
- In China, the Anhydrous Milkfat Price Index rose quarter-over-quarter in Q1 2026, driven by tightened domestic supply.
- Retail sales grew a sluggish 1.7% while CPI increased 1.0% in March 2026, limiting consumer purchasing power.
- Industrial production grew 5.7% and PPI rose 0.5% in March 2026, supporting industrial food processing margins.
- The unemployment rate reached 5.4% in March 2026, and consumer confidence hit 91.6 in February 2026.
- The Manufacturing Index expanded in March 2026, reflecting a recovery in broader industrial food activity.
- The Anhydrous Milkfat Demand Outlook strengthened as holiday-driven domestic dairy consumption increased in January 2026.
- The Anhydrous Milkfat Production Cost Trend stabilized as domestic raw milk feedstock costs leveled in January 2026.
- Oceania dairy export availability tightened and United States dairy protein import volumes plummeted in January 2026.
- The Anhydrous Milkfat Price Forecast remained elevated as infant nutrition sector incorporation strengthened in February 2026.
Why did the price of Anhydrous Milkfat change in March 2026 in APAC?
- Domestic milk production weakened consecutively in February 2026, reducing the availability of essential raw materials.
- Industrial food processing demand for high-performance dairy fats strengthened across the region in February 2026.
- Raw milk feedstock costs strengthened in United States dollar terms during the month of January 2026.
Anhydrous Milkfat Prices in Europe
- In Germany, the Anhydrous Milkfat Price Index fell quarter-over-quarter in Q1 2026, driven by surging supply.
- The 2.7% CPI increase and 4.0% unemployment rate in March 2026 constrained consumer food budgets.
- Retail sales declined 2.0% and consumer confidence hit -24.7 in March 2026, weakening the Anhydrous Milkfat Demand Outlook.
- The Anhydrous Milkfat Production Cost Trend declined as producer prices fell 0.2% in March 2026.
- Industrial production stagnated at 0.0% in February 2026, while the Manufacturing Index contracted in March 2026.
- Anhydrous Milkfat inventories accumulated significantly in Q1 2026 as raw milk deliveries surged during February 2026.
- Export demand for Anhydrous Milkfat from Asian markets strengthened during Q1 2026, providing moderate market support.
- The Anhydrous Milkfat Price Forecast remained bearish in Q1 2026 due to swelled regional stocks.
Why did the price of Anhydrous Milkfat change in March 2026 in Europe?
- Raw milk feedstock costs plummeted in January 2026, significantly lowering overall production expenses in Germany.
- Ample milk volumes boosted cream availability, causing regional Anhydrous Milkfat inventories to swell in Q1 2026.
- Domestic demand softened across the region in Q1 2026, creating downward pressure on market prices.
For the Quarter Ending December 2025
Anhydrous Milkfat Prices in North America
- In the United States, Anhydrous Milkfat Price Index rose quarter-over-quarter in Q4 2025, driven by rising producer costs.
- Anhydrous Milkfat production costs increased in Q4 2025, influenced by a 3.0% YoY rise in PPI in November 2025.
- Consumer confidence, at 89.1 in December 2025, deteriorated, creating headwinds for Anhydrous Milkfat demand.
- Industrial production expanded 2.0% YoY in December 2025, supporting Anhydrous Milkfat demand in food manufacturing.
- Retail sales increased 3.3% YoY in November 2025, boosting Anhydrous Milkfat demand in consumer products.
- Global dairy markets experienced ample milk supplies in Q4 2025, with US milk production surging in October 2025.
- International demand for skim-solids products weakened in Q4 2025, impacting overall dairy trade flows.
- The dairy and related products index strengthened in December 2025, indicating positive performance within the broader dairy sector.
- General inflation, with CPI rising 2.7% YoY in December 2025, elevated raw material and energy expenses.
Why did the price of Anhydrous Milkfat change in December 2025 in North America?
- Producer input costs rose 3.0% YoY in November 2025, increasing Anhydrous Milkfat production expenses.
- Consumer confidence deteriorated in December 2025, dampening demand for premium Anhydrous Milkfat.
- Industrial production increased 2.0% YoY in December 2025, supporting Anhydrous Milkfat demand.
Anhydrous Milkfat Prices in APAC
- In China, the Anhydrous Milkfat Price Index fell quarter-over-quarter in Q4 2025, influenced by weak consumer demand and producer deflation.
- Anhydrous Milkfat production costs declined in Q4 2025 due to a sustained downturn in raw milk farmgate prices.
- Anhydrous Milkfat demand outlook was challenged in Q4 2025 by weak retail sales, rising 0.9% year-over-year in December 2025.
- As of Q4 2025 ending the price of the Anhydrous Milkfat in the Asian market reached to 7249 USD/MT.
- China's Manufacturing Index expanded in December 2025, indicating growth in the food processing sector.
- The dairy market in China remained saturated with excess fluid milk during Q4 2025, impacting Anhydrous Milkfat supply.
- China imposed higher tariffs on dairy imports from the European Union in December 2025, affecting trade flows.
- Broader adoption of cheese and butter in lower-tier cities sustained modest Anhydrous Milkfat demand growth in Q4 2025.
Why did the price of Anhydrous Milkfat change in December 2025 in APAC?
- CPI rose 0.8% year-over-year in December 2025, indicating weak consumer demand.
- PPI declined 1.9% year-over-year in December 2025, reflecting producer deflationary pressures.
- Raw milk farmgate prices in China declined during Q4 2025, reducing Anhydrous Milkfat production costs.
Anhydrous Milkfat Prices in Europe
- In Germany, the Anhydrous Milkfat Price Index fell quarter-over-quarter in Q4 2025, driven by ample global milk supplies.
- Anhydrous Milkfat production costs declined in Q4 2025, as EU farm gate milk prices decreased in October and November 2025.
- Anhydrous Milkfat demand faced headwinds in Q4 2025, with 1.8% CPI in December 2025 eroding consumer purchasing power.
- The Manufacturing Index trended contracting in December 2025, indicating reduced industrial demand for Anhydrous Milkfat.
- Global milk supplies outpaced demand in Q4 2025, contributing to a sharp decline in Anhydrous Milkfat commodity prices.
- Industrial production grew modestly at 0.8% year-on-year in October 2025, limiting robust Anhydrous Milkfat industrial demand.
- Retail sales increased by 1.1% year-on-year in November 2025, providing some stability for Anhydrous Milkfat consumer demand.
- Producer prices declined by 2.5% year-on-year in December 2025, signaling weak pricing power for Anhydrous Milkfat.
- Why did the price of Anhydrous Milkfat change in December 2025 in Europe?
- Global milk supplies significantly outpaced demand in Q4 2025, leading to declining Anhydrous Milkfat prices.
- Producer prices declined by 2.5% year-on-year in December 2025, reflecting weak pricing power.
- Low consumer confidence at -17.5 index in December 2025 dampened overall Anhydrous Milkfat demand.
For the Quarter Ending September 2025
Anhydrous Milkfat Price in North America
- In the United States, the Anhydrous Milkfat Price Index remained stable quarter-over-quarter in Q3 2025, influenced by mixed market signals.
- Production costs rose from a 2.6% year-over-year PPI increase in August 2025 and spiked natural gas prices.
- General inflation, with CPI at 3.0% year-over-year in September 2025, also contributed to higher operational costs.
- Milk feedstock costs softened in Q3 2025 due to increased supplies and low dairy farmer feed costs.
- Demand was supported by a 5.42% year-over-year retail sales rise in September 2025 and 4.3% unemployment.
- Consumer confidence declined to 94.2 in September 2025, suggesting weaker discretionary food product demand.
- Industrial production showed marginal 0.1% year-over-year growth in September 2025, indicating slow manufacturing activity.
- U.S. milk production surged throughout Q3 2025, expanding dairy product inventories globally and domestically.
Why did the price of Anhydrous Milkfat change in September 2025 in North America?
- Rising producer input costs, like a 2.6% PPI increase in August 2025, pressured Anhydrous Milkfat prices.
- Softening milk feedstock costs and surging U.S. milk production in Q3 2025 provided downward price pressure.
- Robust retail sales, up 5.42% year-over-year in September 2025, supported demand, counteracting price declines.
Anhydrous Milkfat Price in APAC
- In China, the Anhydrous Milkfat Price Index remained stable quarter-over-quarter in Q3 2025, influenced by mixed macroeconomic signals.
- Production costs for Anhydrous Milkfat declined in Q3 2025, driven by lower farmgate milk prices and stable dairy feed costs.
- Demand outlook for Anhydrous Milkfat remained strong, supported by robust B2B demand and premium dairy product preferences.
- The Anhydrous Milkfat price forecast suggests continued stability, balancing strong demand against declining production costs.
- The price index was influenced by a 0.1% CPI increase and a 2.5% PPI decline in September 2025.
- Industrial production expanded 6.5% in September 2025, indicating stronger demand for Anhydrous Milkfat in the food sector.
- Retail sales increased 4.5% in September 2025, boosting consumer spending on Anhydrous Milkfat-containing food products.
- Domestic raw milk production declined in Q3 2025, while global milk supply was projected to increase in H2 2025.
Why did the price of Anhydrous Milkfat change in September 2025 in APAC?
- Declining production costs, including lower farmgate milk prices, exerted downward price pressure.
- Robust consumer demand, with 4.5% retail sales growth in September 2025, supported Anhydrous Milkfat prices.
- Strong industrial production, up 6.5% in September 2025, indicated increased demand from food processing.
Anhydrous Milkfat Price in Europe
- In Germany, the Anhydrous Milkfat Price Index rose quarter-over-quarter in Q3 2025, influenced by increasing farm gate milk prices.
- Anhydrous Milkfat production costs increased in Q3 2025, driven by rising EU farm gate milk prices in August and September 2025.
- Elevated energy costs for food processing in Q3 2025, despite a 1.7% PPI decrease in September, contributed to higher expenses.
- Demand for Anhydrous Milkfat strengthened in bakery and confectionery sectors during Q3 2025, favoring natural fats.
- Overall Anhydrous Milkfat demand faced headwinds from a contracting Manufacturing Index in Q3 2025.
- Industrial production declined by 1.0% in September 2025, negatively impacting Anhydrous Milkfat demand from industrial users.
- The Consumer Price Index increased by 2.4% in September 2025, indicating general inflation impacting consumer purchasing power.
- German milk collection declined from January to July 2025, impacting raw material availability for Anhydrous Milkfat production.
Why did the price of Anhydrous Milkfat change in September 2025 in Europe?
- Rising EU farm gate milk prices in August and September 2025 increased Anhydrous Milkfat production costs.
- Elevated energy costs for food processing in Q3 2025 further pressured Anhydrous Milkfat manufacturing expenses.
- The Consumer Price Index increased by 2.4% in September 2025, suggesting broader inflationary pressures on inputs.
