1. Weekly News

Argentina

Argentina's Surging Milk Production in March Signals Strong Recovery in 2025

Argentina's milk production rebounded strongly in Mar-25, rising 15.9% year-on-year (YoY) to 816.4 million liters (L), with the first quarter showing a 9.7% increase, surpassing earlier forecasts. This growth reflects not only improved weather and favorable market conditions but also a low comparison base from 2024’s crisis-hit sector. Despite regional disparities in production due to varying efficiency and resources, the rise in both volume and milk quality—evidenced by an 11.7% increase in milk solids—suggests a solid recovery trajectory. If trends continue, the sector could grow 5 to 7% by year’s end, regaining ground lost over the past two years.

Belarus

Belarus Doubled Milk Production in 20 Years, Strengthens Food Security and Export Power

Over the past two decades, Belarus has significantly bolstered its food security and agricultural output, nearly doubling milk production and seeing major increases in sugar beet and grain yields. The country now boasts full self-sufficiency in key food products, with a milk self-sufficiency level of 283% and meat at 135%. Per capita, Belarusians produce over three times more milk than the Eurasian Economic Union (EAEU) average. Belarus ranks among the top five global dairy exporters and top fifteen in meat exports. Agriculture investments continue to grow, focused on expanding international competitiveness through advanced technologies, scientific innovation, and market diversification.

China

China Bans Production of Reconstituted Drinking Milk to Boost Quality Standards

China has announced a ban on the production and sale of reconstituted drinking milk, made by mixing milk powder with water, effective September 19, 2025, under new national food safety standards. Only raw milk will be permitted for the production of sterilized milk, ensuring higher product quality and better consumer protection. This aligns China with international practices, as countries like the European Union (EU) and Japan, along with global bodies such as World Health Organization (WHO) and Food and Agriculture Organization (FAO), also discourage the use of milk powder in liquid milk products. Experts stress that reconstituted milk lacks the nutritional value and taste of fresh milk, emphasizing the move as a step toward supporting the domestic dairy industry.

France

French Dairy Production Declines Despite Rising Milk Prices

In France, dairy production has seen a decline across several products, including packaged milk, yogurt, dairy desserts, and cheese. Packaged milk production dropped by 9.9%, yogurt and dairy desserts by 4.3%, and cheese by 3.5%, with a notable decrease in soft and blue cheeses. However, milk prices have increased, with conventional milk prices rising by 7.8% and organic milk by 2.1% compared to last year. The production of milk powder (+3.3%) and processed cheese (+2.1%) also saw an annual growth. Additionally, milk with protected designation of origin (PDO) rose to 1.6%.

Mexico

Boosting Mexico's Dairy Sector to Strengthen Food Sovereignty

Mexico’s Secretariat of Agriculture has launched a strategic initiative to increase national milk production by 15%—reaching 15 billion L by 2030—as part of its broader food sovereignty agenda. Announced at the Tenth International Dairy Forum, the plan supports the "Cosechando Soberanía" program, which also prioritizes essential crops like corn and beans. Key measures include addressing livestock diseases such as tuberculosis and brucellosis through sustainable herd management and improving sanitary standards to enhance the dairy sector’s competitiveness in global markets.

Russia

Milk Production in Stavropol Region Increases by 4.6% in Q1-2025

In the first quarter (Q1) of 2025, the Stavropol region in Russia produced 137.4 thousand tons of milk, marking a 4.6% YoY increase. Agricultural enterprises contributed 58.4 thousand tons, up 12.2% from the previous year. The leading districts in terms of milk yield included Shpakovsky, Kochubeyevsky, Aleksandrovsky, Ipatovsky, Predgorny, and Novoalexandrovsky. According to the Deputy Agriculture Minister, government support played a vital role in this growth, with approximately USD 7.12 million (RUB 592 million) allocated under the regional agriculture development program, including USD 2.32 million (RUB 193.3 million) for milk production and USD 1.91 million (RUB 157.9 million) for breeding livestock.

Karelia Targets 75,000 Tons of Annual Milk Production by 2030

The Republic of Karelia in Russia aims to boost annual milk production to 75,000 tons by 2030, up from 60,400 tons in 2024, driven by state-supported agricultural projects. Of the 2024 output, 44,800 tons came from public sector enterprises, which have grown milk production by 1.6 times over the past five years. The government's commitment to dairy farming, highlighting ongoing modernization of state farms like Megrega, Vedlozersky, Ilyinskoye, and Ladozhskoye. Future plans include creating a modern dairy complex with integrated feed and processing capabilities to further expand production.

Uruguay

Uruguay’s Dairy Exports Surged 19% in Q1-2025, Driven by Strong Demand and Rising Prices

Uruguay's dairy sector saw a robust 19% increase in export revenue during the first quarter of 2025, reaching USD 222 million, according to the National Milk Institute (Inale). Whole milk powder led the surge with USD 148 million in sales—a 27% YoY increase—followed by butter with a 25% rise and skimmed milk powder up 11%. Brazil remained the primary export destination. Despite an overall positive outlook, cheese exports dropped 18%, totaling USD 25 million. The boost in exports reflects strong international demand and improved pricing for key dairy products, signaling solid momentum for Uruguay’s dairy industry.

Vietnam

Vietnam’s Fresh Milk Production Grew 4% in Q1-2025 Amid Rising Demand and Investment

Vietnam’s fresh milk production reached 144.6 million L in March and totaled 407.3 million L in the Q1-2025—a 4% YoY increase. Rising domestic demand, expanding middle-class consumption, and major investments in modern dairy farming drove the growth. Advanced technologies, imported cattle breeds, and improved feed systems have enhanced yields and milk quality, helping reduce reliance on imports. Despite challenges such as dependency on imported feed and breeding stock, Vietnam’s dairy sector continues to expand, supported by a growing market for fresh and value-added dairy products.

Vietnam’s Milk Powder Production Rises in Q1-2025 Amid Growing Regional Demand

Vietnam produced 34,200 tons of milk powder in Q1-2025, marking a 1.9% increase from Mar-24, driven by rising domestic and regional demand. March alone saw a significant monthly jump to 12,900 tons, up from 11,000 in Feb-25. The industry’s growth is fueled by major investments from local giants in advanced processing facilities and high-quality inputs. While domestic production has improved, the sector still relies partly on imported milk, especially for high-demand segments like infant formula. Vietnam also exports milk powder to Southeast Asian markets, but challenges such as global price volatility and the need for stricter quality controls persist.

2. Weekly Pricing

Weekly Powdered Milk Pricing Important Exporters (USD/kg)

Yearly Change in Powdered Milk Pricing Important Exporters (W16 2024 to W16 2025) 

Belgium

In W16, Belgium’s milk prices rose to USD 3.97 per kilogram (kg), marking a 3.12% week-on-week (WoW), 3.93% month-on-month (MoM), and 9.07% YoY increase, driven by structurally tight supply conditions and persistent cost pressures. Despite seasonal improvements in pasture quality, milk output has not expanded significantly due to high input costs, labor shortages, and aging farmer demographics, limiting scalability. Structural EU inflation continues to raise production costs, which are gradually reflected in farmgate prices. Strong global demand, particularly from emerging markets, has also kept export flows firm, supporting domestic price strength. Prices have not declined as expected with the season due to active milk absorption by processors and no significant buildup in inventories or trade disruptions to ease market pressure.

Netherlands 

In W16, milk prices in the Netherlands increased to USD 2.37/kg, showing a 1.28% WoW, 2.16% MoM, and 13.40% YoY rise. The increase is supported by strong global demand—particularly from Asia—that continues to drive Dutch export momentum. Persistent high input costs for feed, fuel, and fertilizers keep the production floor elevated, while strict environmental regulations and ongoing farm consolidation reduce long-term supply flexibility. Despite a temporary easing in pricing earlier in the month due to the spring flush, which improved pasture quality and boosted milk output, the market absorbed the seasonal volume spike without major price drops. Any softening was limited by cautious but sustained demand and the structural constraints on scaling production in the medium term.

France

In W16, milk prices in France rose slightly to USD 2.78/kg, up 0.36% WoW and 3.35% MoM, reflecting a modest market correction after earlier declines. This rebound is supported by strong internal and export demand gradually absorbing the previously excess supply, alongside persistently high input costs for energy, feed, and logistics that sustain price floors. However, YoY prices remain down 16.77%, a result of prior oversupply driven by above-average milk yields and favorable weather conditions that boosted pasture productivity. This seasonal surge in production temporarily outpaced local demand, while cooperative stockpiling and delayed exports further pressured prices downward in previous months.

3. Actionable Recommendations 

Target Value-Added Dairy in Expanding Asian Markets

Vietnam’s investment in milk powder and fresh milk reflects rising consumption from a growing middle class. The region's demand is also supported by regional exports. Suppliers should develop or promote value-added products (e.g., infant formula, fortified milk powder) with clean labels. Regional processors and brands should enhance domestic production to reduce reliance on imports, creating business to business (B2B) equipment and ingredient supply opportunities.

Hedge Against Continued High Input Costs and Labor Shortages

Global milk production is increasingly constrained by input cost inflation (feed, energy, logistics) and labor shortages, particularly in developed markets. These conditions are driving a baseline price elevation, especially in Belgium and the Netherlands. Long-term contracts or forward purchasing of milk powders should be considered to hedge against continued price volatility. Additionally, invest in automation or upstream integration where feasible to manage cost risks.

Sources: Tridge, Agro Meat, Dairy News, Milk News, Nieuwe Oogst, The Shiv