Milk prices have risen, cottage cheese prices have fallen: the domestic dairy market is undergoing transformation
The price of domestic dairy products showed a significant annual increase in the first half of 2025, although the latest data from May indicate some price declines or stagnation for some processed products. Global and domestic costs of milk production continue to rise, which is also felt by consumers – especially in the case of raw milk and butter. According to the latest report by the Institute of Agricultural Economics (AKI), although the price of raw milk has decreased slightly compared to April, a strong price increase is still visible in the annual comparison – the Agrárszektor points out.
Rising basic prices – milk is also becoming more expensive globally
According to the AKI PÁIR, the national average producer price of raw milk in May 2025 was 200.88 forints/kilogram. This is a 1 percent decrease compared to the previous month, but 22 percent higher than a year earlier. The price increase is even greater on export markets: the price per kilo of raw milk sold for export was HUF 180.88 in May, which represents a 36 percent annual increase, even if it is 10 percent lower than the domestic price.
Global trends also point to an upward trend. In Oceania, the export price of whole milk powder increased by 46 percent, the price of cheddar cheese by 15 percent, that of melted butter by 9 percent, and that of skimmed milk powder by 6 percent compared to the same period of the previous year. In Italy, the price of raw milk on the spot market reached 64 euros/100 kg in mid-June, while the price of organic milk was 75.5 euros. In the Netherlands, raw milk with a fat content of 4.4% changed hands for 52 euros/100 kg.
Processed dairy products: a mixed picture
Although the prices of dairy raw materials moved upwards, the price movements of processed products show a mixed picture. In May:
The processing price of portioned butter increased by 1%,
the price of Trappist cheese and UHT milks remained unchanged,
while the price of 2.8% fresh milk, sour cream, cow’s curd and fruit yoghurt decreased by 1%.
The data from the Hungarian Statistical Office also reflect a similar trend: the prices of several dairy products stagnated or decreased – for example, ESL milks and Trappist cheese blocks became cheaper by an average of 1-2%.
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