EU Dairy Sector Overview and Future Prospects
Source: The DairyNews
The European Union holds the position of the world's largest milk producer, closely followed by the United States and India. In 2022, the EU's raw milk production reached 160 million tonnes, representing a slight decrease of 0.3% from the previous year.
Of this, 96% was derived from cows, with the remaining 4% sourced from sheep, goats, and buffalos.
Milk production is a widespread activity across all EU Member States, although there is considerable diversity in farm and herd sizes, yields, and farming methodologies. These range from free-range farming in the Alpine regions to large-scale specialized dairy farms. In 2022, EU dairy farmers supplied 160 million tonnes of milk, with 94% of this output delivered to dairies for processing into fresh products such as cheese and butter.
The EU dairy sector operates under stringent regulations encompassing hygiene, animal health and welfare, and official controls. To support farmers and address market imbalances, the sector benefits from various instruments under the common agricultural policy (CAP). These include the common market organization, public intervention and private storage provisions, direct payments, and rural development measures. The CAP also promotes and supports producers’ organizations, leveraging their collective bargaining power to stabilize prices, enhance farm milk prices, and mitigate price volatility.
Looking ahead, the EU and global demand for dairy products is expected to bolster the world dairy markets. However, price fluctuations and market imbalances are likely to persist as significant challenges. The sector's future resilience and sustainability will depend heavily on innovation. This innovation aims to balance farmers' need for a sustainable income, consumers' demand for affordable and high-quality dairy products, and the imperative to meet environmental and animal health standards.
In conclusion, the EU dairy sector, with its robust regulatory framework and supportive policies, is well-positioned to navigate future challenges. Through continued innovation and strategic support, it can achieve a sustainable and prosperous future for all stakeholders involved.
Milk production is a widespread activity across all EU Member States, although there is considerable diversity in farm and herd sizes, yields, and farming methodologies. These range from free-range farming in the Alpine regions to large-scale specialized dairy farms. In 2022, EU dairy farmers supplied 160 million tonnes of milk, with 94% of this output delivered to dairies for processing into fresh products such as cheese and butter.
The EU dairy sector operates under stringent regulations encompassing hygiene, animal health and welfare, and official controls. To support farmers and address market imbalances, the sector benefits from various instruments under the common agricultural policy (CAP). These include the common market organization, public intervention and private storage provisions, direct payments, and rural development measures. The CAP also promotes and supports producers’ organizations, leveraging their collective bargaining power to stabilize prices, enhance farm milk prices, and mitigate price volatility.
Looking ahead, the EU and global demand for dairy products is expected to bolster the world dairy markets. However, price fluctuations and market imbalances are likely to persist as significant challenges. The sector's future resilience and sustainability will depend heavily on innovation. This innovation aims to balance farmers' need for a sustainable income, consumers' demand for affordable and high-quality dairy products, and the imperative to meet environmental and animal health standards.
In conclusion, the EU dairy sector, with its robust regulatory framework and supportive policies, is well-positioned to navigate future challenges. Through continued innovation and strategic support, it can achieve a sustainable and prosperous future for all stakeholders involved.
