EU Milk Production Projected to Decline in 2025
Source: DairyNews.today
The European Union's milk production is forecast to decline in 2025, with total deliveries expected to reach 149.4 million metric tons (MMT), according to a recent report by the U.S. Department of Agriculture's Global Agricultural Information Network (GAIN). This marks a slight decrease of 0.2% from the revised 2024 estimates, reflecting ongoing challenges in the dairy sector.
The anticipated reduction in cow milk deliveries, projected at 145.3 MMT in 2025, is attributed to a combination of factors. Low profit margins for farmers, along with environmental regulations and disease outbreaks, are forcing smaller dairy producers to exit the market. Although productivity per cow is expected to improve, it will not be sufficient to offset the decline in cow numbers, resulting in a marginal drop in overall milk production.
For 2024, cows’ milk deliveries are estimated at 145.6 MMT, representing a 0.3% increase compared to 2023. However, the recovery in farm gate milk prices, which showed signs of improvement earlier in 2024, is expected to stabilize, with future growth remaining uncertain.
Fluid milk domestic consumption is projected to continue its downward trend, falling to 23.5 MMT by 2025, a 0.3% decrease. Factory use consumption is also expected to dip slightly, decreasing by 0.2%, as dairy processors face reduced milk availability. This reduction will require processors to make strategic decisions about product allocation as they navigate lower milk supplies in the coming years.
The report highlights the ongoing structural challenges within the EU dairy sector, where environmental regulations, economic pressures, and fluctuating demand patterns continue to impact production and market dynamics.
For 2024, cows’ milk deliveries are estimated at 145.6 MMT, representing a 0.3% increase compared to 2023. However, the recovery in farm gate milk prices, which showed signs of improvement earlier in 2024, is expected to stabilize, with future growth remaining uncertain.
Fluid milk domestic consumption is projected to continue its downward trend, falling to 23.5 MMT by 2025, a 0.3% decrease. Factory use consumption is also expected to dip slightly, decreasing by 0.2%, as dairy processors face reduced milk availability. This reduction will require processors to make strategic decisions about product allocation as they navigate lower milk supplies in the coming years.
The report highlights the ongoing structural challenges within the EU dairy sector, where environmental regulations, economic pressures, and fluctuating demand patterns continue to impact production and market dynamics.
