Greece's Dairy Industry Bounces Back as Milk Prices Stabilize and Sales Recover
In 2022, the price for cow’s milk began at a relatively moderate €0.44 per liter. However, the onset of Russia’s invasion of Ukraine in February led to a sharp increase in animal feed prices, pushing milk producer prices to over €0.60 per liter. This price surge strained the dairy industry, resulting in higher retail prices and a consequent drop in sales volume.
As the situation around animal feed improved in 2023, prices began to slowly de-escalate. The year started with producer prices at €0.58 per liter, gradually falling below €0.50 per liter. Over the first five months of 2024, price stability was observed, with producer prices hovering between €0.51 and €0.52 per liter—still above early 2022 levels, but significantly more stable.
The impact of these price adjustments on the retail market has been notable. In 2022, retail milk prices had risen by 11.9%, leading to a 2.3% drop in sales volume. However, more moderate price increases in 2023 led to a 3.4% rise in sales volume, with the first half of 2024 seeing a further 6.6% increase in sales volume as prices declined by 3.2%.
The dairy industry’s recovery reflects a delicate balancing act between maintaining profitability and ensuring consumer affordability. As price stability continues, Greece's dairy sector is poised for continued growth, regaining its footing in a competitive market.