The Dairy Map of the World 2025: Who Feeds the Planet?
Global milk production reached around 950 million tons in 2024, an increase of 1.1% compared to the previous year, according to the OECD-FAO Agricultural Outlook 2025–2034. The main drivers were India and Pakistan, where volumes grew by about 3%. However, global dairy trade remains uneven: while some countries are strengthening their leadership in international markets, others are focused almost entirely on domestic consumption.
Key Producers
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India remains the world’s largest milk producer with around 227 million tons in 2024. Nearly all of this volume is consumed domestically, with exports still minimal. This makes India a production powerhouse, but not a major player in global trade.
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The European Union produces around 150 million tons annually. Growth has stalled, and in some member states production is even declining due to climate challenges and herd reductions. Despite this, the EU retains a strong position in cheese exports, remaining the largest global supplier, though competition in butter and milk powder is intensifying.
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The United States continues steady growth, producing about 102–103 million tons in 2024–2025. U.S. exporters are gaining ground, particularly in cheese and butter, benefiting from demand in Asia and Latin America. Their advantage lies in efficiency and the ability to adapt quickly to global market fluctuations.
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New Zealand remains the global “export champion.” While its production growth is moderate, the country plays a strategic role in supplying milk powders and butter to Asia and the Middle East. Here, exports — not domestic demand — drive the industry’s development.
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China produces around 40–42 million tons, but is currently facing oversupply challenges. In 2024, the Ministry of Agriculture reported weaker demand for premium dairy products and herd optimization through culling less productive cows. Nevertheless, imports of milk powder and butter remain high, as domestic output does not always align with processing needs.
Exports and Imports
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The EU recorded about a 1% decline in exports in 2024, mainly due to weaker shipments of milk powder and butter. Cheese exports, however, continue to grow, especially to the UK, Japan, and South Korea.
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The U.S. boosted cheese exports by roughly 7% in early 2025, strengthening its presence in Asia and Latin America.
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New Zealand expanded shipments to the Middle East and Southeast Asia, capitalizing on reduced EU supply.
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India still has almost no role in global dairy trade, with production focused on domestic demand.
Challenges and Opportunities
The industry faces several key challenges: climate change (droughts and extreme weather in the EU), rising feed and energy costs, and increasingly strict ESG requirements and quality standards.
At the same time, new opportunities are emerging. Emerging economies such as India, Pakistan, and Southeast Asia are seeing strong growth in domestic consumption. Demand for value-added products — particularly cheeses and fermented dairy — is rising. The U.S. and New Zealand are benefiting from stagnant EU production, strengthening their export positions.
The Outlook
The year 2025 is shaping a new “Dairy Map of the World.” India remains the largest producer, but its influence on trade is limited by domestic demand. The EU faces mounting challenges and is gradually ceding ground to competitors. The U.S. and New Zealand are consolidating their export advantages, while China continues to balance between rising production and persistent import dependence.
The future of the global dairy industry will be determined not only by production volumes but also by the ability of countries to adopt sustainable practices, leverage technology, and meet shifting consumer demands.
