EU Dairy Sector Faces Economic Challenges Amid Falling Milk Prices

The European Milk Board (EMB) has issued a warning regarding the economic difficulties faced by EU dairy farmers due to increasing global milk volumes, declining prices, and high production costs. The organization, which includes the Irish Creamery Milk Suppliers Association (ICMSA), highlighted the severe pressure on the European dairy sector.

The EMB has suggested that a further decline in prices could occur and has called for the European Commission to consider activating a voluntary supply reduction at the European level. This measure was previously introduced by the European Commission in 2016 in response to significant market pressures following the abolition of milk quotas.

However, according to Martin Heydon, the Minister for Agriculture, Food and the Marine, there is currently no formal proposal from the European Commission for an EU voluntary milk reduction scheme. The EMB has criticized the slow response of the commission and key member states in addressing the high milk volumes.

EMB President Kjartan Poulsen emphasized the need for effective market instruments, stating, "Voluntary supply reduction is not a theoretical concept, but a necessary instrument for stabilising the milk market in times of crisis."

The European Commission's Expert Group for Agricultural Markets reported a decline in EU milk deliveries in certain member states, including Ireland. Additionally, data from Ireland's Central Statistics Office showed a 23.1% drop in milk prices in the year leading to April 2026.

Rabobank's Global Dairy Quarterly report noted a slowdown in global milk production growth in the second quarter, after four quarters of expansion. The report specifically mentioned that milk production in the EU and UK had been on a significant upward trend, but this growth is now shifting towards a gradual reduction.