Dairy farmers in Northern Ireland face continued pressure from farm gate milk prices remaining below the cost of production. The first three months of 2026 brought heavy rainfall through January, February, and most of March, along with rises in diesel and fertiliser costs that squeezed margins.

Global milk markets showed a brief recovery in early 2026, but the Global Dairy Trade auction on 7 April recorded a 3.4% overall decline from the prior event. Four of five products on the Dutch ZuivelNL market on 8 April also fell in price.

A spring flush of milk is adding strain to saturated markets in the UK and Ireland. UK milk supply rose over 3% in January 2026, while Ireland saw more than 4% growth in the same month. Elevated volumes continued into February and March.

European production hit record levels, with Germany up 7% year-on-year in February at 169 million extra litres. France increased 6%, or 111.8 million litres, for the month.

Factors boosting output include disease recovery, lower input prices, quality forage, and prior high milk prices. UK production keeps climbing despite falling prices, with record volumes possible for 2026.

Confectionery firms are cutting milk content in chocolate products and using vegetable fats like palm oil instead. Milk supplies calcium, protein, vitamin B12, phosphorus, and iodine, plus creamy texture. Palm oil offers mainly calories and saturated fats with few nutrients.