New regional statistics reveal contrasting trends in the dairy industry during the first eight months of 2026, with declining cheese production but substantial increases in powdered milk, butter, and drinking milk.

The Azorean dairy industry recorded a significant shift in production during the first eight months of 2026, as cheese output declined by 13.1 percent, despite a 1.2 percent increase in the quantity of milk delivered to processing facilities.

According to the Azores Regional Statistics Service (SREA), cheese production fell from 24,098 metric tons between January and August 2025 to 20,952 metric tons in the same period in 2026, a reduction of 3,146 metric tons.

Meanwhile, milk deliveries rose from 428.5 million to 433.6 million liters, about five million liters more than the same period last year.

The figures reveal contrasting developments across the dairy sector. Powdered milk production rose 22 percent to 14,228 metric tons, while butter production rose20.5 percent to 8,546 metric tons. Drinking milk production also rose 8.5 percent to 93.6 million liters.

Yogurt production declined by 5.1 percent, while cream production increased from 51,000 to 125,000 liters.

Despite the overall decline in cheese production, August offered signs of improvement. That month, cheese output rose about 7 percent from August 2025 to 2,711 metric tons. Milk collection also rose by 1.9 percent to 51.3 million liters.

The statistics confirm the continued dominance of São Miguel and Terceira, which together account for approximately 91.5 percent of the milk collected throughout the archipelago.

São Miguel delivered 288.5 million liters, representing 66.5 percent of the regional total, while Terceira contributed 108.1 million liters, or 24.9 percent. Both islands registered increases over the previous year.

Elsewhere, the picture was more uneven. Graciosa recorded an 8.2 percent increase in milk deliveries, while Pico experienced a particularly sharp decline of 46.8 percent. Santa Maria and Flores also registered substantial reductions of 35.9 percent and 28.4 percent, respectively. Faial and São Jorge experienced smaller decreases.

Cheese production remained concentrated in São Miguel, with approximately 14,510 metric tons, representing 69.3 percent of the regional total. Terceira followed with 3,210 metric tons and São Jorge with 1,680 metric tons. Faial produced 865 metric tons, Graciosa 524 metric tons, and Pico 142 metric tons, while Santa Maria and Flores recorded considerably smaller quantities.

The figures suggest a shifting distribution of milk across dairy products, although the statistics do not explain the commercial or industrial reasons behind these developments.

For an archipelago where dairy farming has shaped rural livelihoods, agricultural traditions, and regional identity for generations, these changes raise important questions about the industry’s future, particularly on smaller islands where production has declined considerably.

The challenge extends beyond the volume of milk collected or cheese manufactured. It also concerns the long-term sustainability of farming communities, the economic value of regional products, and the preservation of an agricultural heritage closely associated with the Azorean landscape.

The latest figures demonstrate that producing more milk does not necessarily mean producing more cheese—and that the future of Azorean dairy farming will depend as much on how its milk is used as on how much is produced.

Based on a story in Diário dos Açores-The photo is also from DA.

Source and credits: Based on data from the Serviço Regional de Estatística dos Açores (SREA) for January–August 2026, compared with the same period in 2025.