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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.

Among the large European milk producers, only Poland meets the conditions to improve results in the next decade, says the French Chamber of Agriculture. In Western Europe, this sector is ceasing to function.

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.