In the first half of 2025, raw milk prices showed a steady upward trend driven by several key factors. Across regions like the U.S., India, and Jersey, dairy processors and milk producers faced rising operational costs. These included increases in energy, packaging, freight, and labor, which were often passed down the supply chain. For farmers, the higher cost of production especially in the face of volatile market pricing created pressure for fairer compensation. This led to a rise in procurement prices from processors aiming to support farmers while balancing consumer affordability.
In the U.S., ongoing reforms in the Federal Milk Marketing Orders, including changes to "make allowances," sparked debate. With processors deducting more for production costs, farmer payouts were affected, prompting calls for greater pricing transparency. The proposed federal legislation to mandate biennial reporting of dairy processing costs reflected this push toward a more data-driven and equitable pricing model. Meanwhile, Indian and European markets like Jersey also adjusted milk rates, citing inflationary pressures and seasonal challenges such as early summer heatwaves.
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In the second half of 2024, raw milk prices showed a mixed trend across global markets. In Asia, countries like India saw relatively stable prices, driven by strong local demand and steady production. However, in regions like Australia, prices came under pressure due to surplus milk supply and increased imports, which created a challenging environment for local farmers.
In Europe, prices remained mostly stable but showed some upward pressure in parts due to lower milk yields caused by poor weather conditions. Still, global market uncertainties and cautious processor strategies kept price movements limited. In North America, raw milk prices were steady as well. Farmers managed to slightly exceed production expectations, but rising feed and labor costs continued to affect their bottom line. Meanwhile, supply shortages and strong consumer demand for cheese and butter helped support the market during key seasonal periods.
Overall, the raw milk market in H2’24 was shaped by a balance of production constraints and firm demand, especially in the lead-up to the year-end holidays. Farmers faced profitability challenges due to higher input costs, while processors remained cautious amid shifting global dynamics.
Raw milk basically refers to unpasteurised milk, that is, the milk which has not been through the process of pasteurisation or homogenisation. It is a method of heating liquid foods in order to decontaminate them and kill microorganisms for safe drinking. The components of raw milk are safe for its consumption and other uses.
Cheese, Butter , Yoghurt, Ice Creams, Sweets, Custard, Cosmetics
Nestle SA, China Mengniu Dairy Company Limited , Lactalis Group, Dairy Farmers of America, DMK Deutsches Milchkontor GmbH
CurrencyUS$ (Data can also be provided in local currency)
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Raw Milk, as secreted by mammals like cows, buffaloes and goats is free of micro-organisms. Raw milk is further processed and refined for commercial use. The milking enterprise complements other agricultural enterprises within a farming system.
Siddharth David
Manager - Market Research
Delivering market research and procurement intelligence at Procurement Resource with a focus on economic forecasting, commodity analysis, and client advisory to help sourcing teams make data-backed purchasing decisions.
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