Diverging Trends in Dairy and Beef Cow Herds Between Western and Central Europe: USDA Report

In Western Europe, farmers’ incomes are primarily linked to land area, whereas in Central Europe, CAP support targets small cattle farmers. Poland’s dairy and beef sectors illustrate the impact of this policy distinction. Polish dairy farmers are modernizing their herds by phasing out older, less productive cows, while the beef sector benefits from strong demand and high prices within the EU and beyond. Poland's beef industry has also expanded cattle imports from the Baltic region, Czechia, and Slovakia for domestic slaughter, leading to a 21% increase in Polish slaughter volumes in the first half of 2024.

In Central Europe, many farms are pivoting from dairy to beef production due to the lower investment and labor requirements of the beef sector. The shift is also supported by rising demand for dual-purpose breeds, which offer adaptability to market conditions and a longer productive lifespan. For example, Romania anticipates steady growth in its beef cow population through 2025, fueled by challenges in milk marketing and expanding beef export markets. Similar trends are noted in the Balkans, particularly in Croatia, Bulgaria, and Greece.

The report concludes that Central Europe's cattle sector is increasingly commercialized, with more efficient practices, fewer backyard operations, and a focused approach to meeting market demand.