The European and Italian dairy markets are stable with strong demand and satisfactory raw material prices, but face underlying issues. In France, a conflict between Sunlait and Savencia over collective negotiation highlights compliance concerns with EU regulations as Savencia prefers individual contracts. Meanwhile, Lactalis is cutting organic milk purchases due to reduced demand, impacting several EU countries. In the Netherlands, Lactalis faced legal action for unfair practices, similar to issues in Italy, showing the dairy industry's strong bargaining power over producers despite EU efforts to improve producer negotiation capabilities.