Μake us preferred on Google Greek feta is facing a new supply challenge as strong international demand collides with declining availability of the sheep milk needed to produce the protected-origin cheese.
Sheep milk production fell 7.4% in the first seven months of 2026 compared with the same period last year. At the same time, the price paid to producers has risen significantly, increasing pressure on both the dairy industry and consumers.
In July, the average producer price for sheep milk reached €1.5703 per kilogram, up from €1.3874 per kilogram in July 2025, an increase of 13.2%.
Fewer animals, less milk
The decline in milk availability is also linked to the shrinking livestock population.
According to estimates presented by the National Interprofessional Organization of Feta, approximately 500,000 to 600,000 animals have been lost.
Even if livestock farmers begin rebuilding their herds immediately, milk production cannot recover quickly. The industry estimates that it would take at least two years for production to return to previous levels.
Continued outbreaks of sheep and goat pox could extend that recovery period even further.
Why feta faces a particular challenge
The shortage of raw material is particularly significant for feta because the cheese has specific production requirements.
Feta is a Protected Designation of Origin (PDO) product and must meet defined production specifications. As a result, limited availability of suitable milk cannot simply be addressed by replacing it with other raw materials without raising questions about whether the resulting product would still meet those requirements.
At the same time, demand from international markets remains strong.
Feta exports have increased in recent years, and the industry says they are continuing to rise in 2026. The result is a market in which demand for feta is increasing while less of the required raw material is available for production.
Feta prices continue to rise
The pressure is already being reflected in retail prices.
Feta currently sells for around €12 to €13 per kilogram, while the president of the National Interprofessional Organization of Feta, has warned that prices could eventually reach €15 to €16 per kilogram.
The coming period is expected to be critical for the market. Milk production, the development of the livestock disease and demand from international markets will largely determine how much further pressure is placed on feta prices.
