Raw milk deliveries to processing plants exceeded expectations, pushing spot milk prices lower. The surplus supply, combined with modest demand growth, is putting downward pressure on raw milk prices, though some processors still raise farmgate rates.
Lactose prices increased at both ends of the range and in the mostly price series according to the weekly USDA dairy report. The rise signals stronger input costs for lactose, affecting food and beverage manufacturers that use it as an ingredient. This upward movement suggests potential price pressure on lactose-containing products.
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Lactose | China | CIF | USD 1,590.00/MT | August 2026 |
| Lactose | India | CIF | USD 1,680.79/MT | August 2026 |
| Lactose | USA | FOB | USD 1,477.00/MT | August 2026 |
| Lactose | New Zealand | FOB | USD 1,898.60/MT | August 2026 |
| Lactose | Canada | FOB | USD 1,502.00/MT | August 2026 |
| Lactose | China | CIF | USD 1,468.00/MT | July 2026 |
| Lactose | India | CIF | USD 1,533.00/MT | July 2026 |
| Lactose | USA | FOB | USD 1,413.00/MT | July 2026 |
| Lactose | New Zealand | FOB | USD 1,861.37/MT | July 2026 |
| Lactose | Canada | FOB | USD 1,421.50/MT | July 2026 |
Stay updated with the latest Lactose prices, historical data, and tailored regional analysis
In the USA, the average price of Lactose was ~USD 1,413.00/MT (FOB) in July and ~USD 1,477.00/MT in August, showing a ~4.5% increase. Canada recorded a slightly larger rise, with average prices climbing about 5.7% from ~USD 1,421.50/MT (FOB) to ~USD 1,502.00/MT. The quarter started with a dip in New Zealand prices in early July, but the US market stayed firm as manufacturers reported limited supplies and tight inventories. Prices then rose in August, as wider dairy markets strengthened and whey costs climbed sharply because processing capacity fell short of demand for whey protein. In September, US prices held at high levels and edged slightly higher, while prices in New Zealand eased mid-month. Supply pressure built in the background, as US milk production rose 2.7% compared with a year earlier, adding to whey and lactose output. China's lactose imports also fell 19% in the first five months of the year, reducing export demand.
Analyst Insight
According to Procurement Resource, lactose prices are likely to stay firm on tight whey supply, though rising milk output and softer Asian demand may limit further gains.
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In China, Lactose prices were ~RMB 8.90/kg and ~RMB 11.28/kg, respectively, in the first two months of Q2’26, showing a ~26.8% increase. Similarly, in India, Lactose prices rose from ~INR 125.18/kg in April to ~INR 159.85/kg in May, showing a ~27.7% increase. The rise was mainly driven by tight edible-grade availability, heavy contract commitments, and limited spot volumes from North American suppliers. U.S. lactose production for human and animal use fell 3.2% year-on-year in April, even though dry whey and cheese output improved, showing that lactose availability did not expand in line with whey streams. Asian buyers faced firmer export offers, while China remained dependent on imported lactose-bearing whey products because domestic whey output was limited by its smaller cheese sector. However, price resistance started building, as China’s lactose buying fell 27% year-on-year, or 3,902 MT, in April. Europe showed stronger buying, with EU27 lactose demand rising 59% year-on-year, or 1,153 MT, which tightened export competition.
Lactose is an example of a disaccharide. It is a sugar made of galactose and glucose subunits. It is naturally found in milk and makes up around 2–8% of milk (by weight). In appearance, Lactose is a white, water-soluble, non-hygroscopic solid with a mildly sweet taste. It is widely utilised in the food industry.
C12H22O11
Filler or diluent in tablets and capsules, Stabiliser, Infant formulas, Pharmaceutical industry, Sweetener, Ethanol production
5965-66-2, ß-D-Galactopyranosyl-(1?4)-D-glucose, Milk Sugar, Lactobiose, 4-O-ß-D-Galactopyranosyl-D-glucose
Nestlé SA, Fonterra Co-operative Group Limited, Dairy Farmers of America Inc., Lactalis International, Land O’Lakes, Inc.
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
In the dairy industry, crystallisation is a vital separation process that is often utilised in the refining of lactose from whey solutions. In the refining operation, lactose crystals are removed from the whey solution through nucleation, growth, and aggregation.
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