The drop in milk prices recorded from the beginning of the year until December will cost Portuguese producers around 72 million euros, according to an estimate by the Portuguese Milk Producers Association (Aprolep).

Cooperatives associated with Lactogal announced at the end of July a further decrease of 1.5 cents per litre in the price paid to producers, effective from 1 August across mainland Portugal, Executive Digest reports.

€72 million impact

On the island of São Miguel, in the Azores, “Prolacto and Insulac have already responded with price reductions of two and 1.5 cents per litre, respectively, justifying the decrease with the situation in national and international markets,” according to Aprolep.

According to the association, the decrease between August and December represents 12 million euros less for producers. This is in addition to the 60 million euros already represented by the decrease of three cents per litre compared to 2025 for the whole of 2026, the management of Aprolep estimates in a response to Lusa.

Increased costs

According to the association, the situation is particularly serious as producers are already facing increased costs for fertiliser, animal feed and energy. Some producers fear further drops in the price of milk, which, should it occur, would be “absurd”, the association said.

Following the cooperatives’ decision to lower the amount paid to producers, Aprolep called on them to reinstate the amount in September, which did not happen.

Market pressures

The cooperatives justified the decrease to producers by citing market conditions, including the price of powdered milk, difficulties in selling packaged milk and aggressive promotional practices.

Producers are now awaiting a response from the Portuguese Government regarding the price drop, rising production costs, promotional practices and the import of French milk by Intermarché.