Key facts
- EU butter production rose 6.3% year-on-year to 2.22 million metric tonnes in 2025.
- EU milk production increased by 1.64% in 2025.
- Cream market showed signs of contraction, with a 2% decline in production for consumption.
- EU butter exports remained stable, contracting 0.3% year-on-year.
- Retail butter sales in the EU declined by 10.2% in 2025.
A new report indicates that EU butter production saw a significant increase of 6.3% in 2025, reaching 2.22 million metric tonnes, while overall EU milk production grew by 1.64% year-on-year. This surge in butter production was attributed to higher valuations compared to cream, which experienced a contraction. Cream for consumption production declined by 2% year-on-year, and trade within the EU bloc also saw a decrease. Despite the accelerated pace of butter production, EU butter exports remained largely stable, showing a 0.3% contraction year-on-year. The retail segment for butter experienced a substantial decline of 10.2% in 2025, continuing a trend of saturation observed since 2020. In contrast, the bulk butter trade within the EU bloc demonstrated steady growth, increasing by 2.9%. Internationally, the EU has shifted away from bulk butter exports, which decreased by 4.7% over 2024, while the US and New Zealand reported higher export volumes, indicating increased global competition. EU-sourced butter also faced substitution in price-sensitive markets like Indonesia. The report concludes that while global price trends influence EU butter prices, regional fundamentals remain decisive, with structural differences limiting the reflection of global signals in the EU market.
