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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.

The trend of the dairy and beef cow herd numbers differ between Western and Central Europe, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report. While in Western Europe significant reductions are reported, both the dairy and beef cow herds are stabilizing in Central Europe. This difference is mainly caused by the Common Agricultural Policy (CAP) of the EU. In most western EU Member States, the farmer’s income is pre-dominantly based on the farmed hectares. While in Central Europe, CAP support is provided specifically to small cattle farmers. The economic and policy climate for cattle farming is particularly positive in Poland. The Polish dairy sector is restructuring and further building its dairy herd, phasing out the less efficient and older cows. While the Polish beef sector is benefitting from the increased beef prices, and the improving demand in EU as well as non-EU markets. To fulfill this demand, the sector is sour

According to Rabobank, the production of raw milk in the dairy regions in the second half of 2024 decreased by 0.5% compared to the second half of 2023. Compared to the previous year, world milk production increased by 0.5%. The dynamics of global demand for dairy products remains ambiguous. Foodservice channels remain sluggish in most major markets. Consumers are eating more at home, which is supporting retail.