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The European Union's dairy industry is facing tight profit margins due to high production costs and low prices, according to a recent survey by the United States Department of Agriculture (USDA). Meanwhile, the difficulties that animal disease outbreaks and strict regulations have brought to European producers are expected to continue to act as a brake in the new year. As stated in the relevant report, the cost of milk reached its highest price in 2022, and after a decline in 2023, this year it showed weak signs of recovery. However, the sector, especially in Western Europe, faces significant problems that are slowing down the productive "forces" of the region, such as strict environmental legislation and the outbreak of various epidemics. More specifically, in the Netherlands, the loss of the ability to exceptionally use large quantities of manure on pastures led many farmers to slaughter a significant part of their herds. On the other hand, in Ireland, the reduced possibility of applying the derogation for nitrates prompted many farmers to shrink their cattle herds, in order to maintain their dairy animals. The difficulties, of course, include the epidemics of bluetongue type BTV-3, mainly in Northwestern Europe (Northern France, the Netherlands, Belgium, Germany, Denmark), and epizootic hemorrhagic disease (EHD), which has made its presence felt to a large extent in Spain and France. Although the symptoms of these two diseases are relatively mild in cows, the infections in general often lead to a temporary decrease in milk production, fertility problems, and an increased mortality rate. This is consistent with the relatively low calf/cow ratio and the large losses in 2023, which are expected to continue in both 2024 and 2025, compared to 2022.

According to the latest report from the USDA Global Agricultural Information Network (GAIN), the dairy industry across the EU faces low profitability due to high production costs and relatively low milk prices.

Throughout the EU, the dairy sector is facing slim margins due to high input costs and relatively low milk prices, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report. The milk price peaked in 2022, dropped in 2023, after which it only partially recovered this year. At the same time, is the sector in Western Europe facing multiple production limiting factors related to restrictive environmental regulations and disease outbreaks. In the Netherlands, the loss of the EU derogation to spread a surplus of manure on pastures prompted farmers to slaughter a part of their dairy cow herd. In Ireland, a reduction in applicability of the nitrate derogation has led to a cut in the beef herd in favour of maintaining the dairy herd. Another factor is the outbreaks of the Bluetongue Virus (type BTV-3) in mainly Northwestern Europe (Northern France, the Netherlands, Belgium, Germany, and recently Denmark) and Epizootic Hemorrhagic Disease