Arla Foods forecasts lower dairy prices as milk supply surges across Europe
Arla predicts lower 2026 dairy prices as milk supplies surge across Europe. This shift is expected to help boost consumer demand for its key brands.
Insights:
Arla Foods reported record revenue for the 2025 fiscal year today, while simultaneously announcing that a sharp surge in milk production across Europe last year has created a surplus in global milk supplies. The company expects this oversupply to exert downward pressure on prices within the global dairy market during the early months of 2026, leading to a lower revenue outlook for the current year.
The total milk production within the cooperative rose to 14.3 billion kg in 2025, up from 13.7 billion kg in the prior year. Arla Foods described this increase as one of the sharpest in recent memory, a shift that has fundamentally altered the supply dynamics of the industry. Consequently, the organization has revised its 2026 revenue guidance to between €13.3 billion and €14.1 billion.
