EU Dairy Sector Confronts Pressures from Environmental Regulations and Disease Outbreaks
Source: DairyNews.today
The European Union's dairy sector is grappling with squeezed profit margins as high input costs combine with modest milk prices, as highlighted in a recent USDA Global Agricultural Information Network (GAIN) report. Following a peak in milk prices in 2022, the sector saw a decline in 2023, with only a partial recovery this year, leaving dairy producers facing ongoing financial pressures.
Western Europe, in particular, is experiencing production constraints due to increasingly stringent environmental regulations and the impact of disease outbreaks. In the Netherlands, the termination of the EU derogation that allowed excess manure spreading has forced some farmers to reduce their dairy herds. Similarly, in Ireland, restrictions on nitrate derogation are prompting a shift in focus, with reductions in the beef herd to prioritize dairy production.
Adding to these challenges, Northwestern Europe has been hit by outbreaks of the Bluetongue Virus (BTV-3) and Epizootic Hemorrhagic Disease (EHD). Bluetongue has primarily affected dairy operations in Northern France, the Netherlands, Belgium, Germany, and Denmark, while EHD has predominantly impacted Spain and France. Although these diseases tend to present mild symptoms in dairy cows, they are linked to temporary reductions in milk yield, fertility issues, and higher mortality rates. These factors contributed to low calf-to-cow ratios and increased herd loss rates in 2023, with similar trends anticipated through 2025.
In addition to health concerns, unseasonably wet weather in spring and early summer of 2024 forced farmers to keep cattle indoors for extended periods, further disrupting operations. This led to reduced local fodder production in Northwestern Europe, impacting dairy farmers who rely heavily on pasture-based feeding systems.
The cumulative effect of regulatory constraints, disease outbreaks, and unfavorable weather conditions is expected to result in notable reductions in dairy cow herds in France, Germany, the Netherlands, and Belgium throughout 2024. As the industry navigates these obstacles, EU dairy producers continue to adapt to a complex landscape shaped by both environmental and economic pressures.
Adding to these challenges, Northwestern Europe has been hit by outbreaks of the Bluetongue Virus (BTV-3) and Epizootic Hemorrhagic Disease (EHD). Bluetongue has primarily affected dairy operations in Northern France, the Netherlands, Belgium, Germany, and Denmark, while EHD has predominantly impacted Spain and France. Although these diseases tend to present mild symptoms in dairy cows, they are linked to temporary reductions in milk yield, fertility issues, and higher mortality rates. These factors contributed to low calf-to-cow ratios and increased herd loss rates in 2023, with similar trends anticipated through 2025.
In addition to health concerns, unseasonably wet weather in spring and early summer of 2024 forced farmers to keep cattle indoors for extended periods, further disrupting operations. This led to reduced local fodder production in Northwestern Europe, impacting dairy farmers who rely heavily on pasture-based feeding systems.
The cumulative effect of regulatory constraints, disease outbreaks, and unfavorable weather conditions is expected to result in notable reductions in dairy cow herds in France, Germany, the Netherlands, and Belgium throughout 2024. As the industry navigates these obstacles, EU dairy producers continue to adapt to a complex landscape shaped by both environmental and economic pressures.
