1. Weekly News

Argentina

Milk Production Surges 15.9% MoM in Argentina's Cuenca Oeste

Argentina’s Cuenca Oeste region saw milk production jump 15.9% in March month-on-month (MoM) and 10.9% year-on-year (YoY) in the first quarter of 2025 (Q1-2025), driven by favorable weather and improved soil moisture. While domestic demand rebounded 11% YoY, price increases for producers remain limited. Global trade tensions are expected to have minimal impact on exports due to Argentina’s limited exposure to the United States (US) market.

Indonesia

Indonesia Strengthens National Dairy Industry with New Cattle Imports

The Indonesian Ministry of Agriculture (Kementan) has taken a significant step to strengthen the national dairy industry by importing 55 Frisian Holstein dairy cows from Australia. This move is part of the government's National Milk and Meat Production Enhancement Program (P2SDN). Members of the Indonesian Dairy Cooperatives Association (GKSI), have imported the cows and plan to bring in 10,000 more this year. The initiative aims to increase local dairy cattle populations, accelerate the dairy production process, and ensure sustainable growth. Private sector involvement is crucial, with flexible import policies easing the process for businesses. Additionally, the program focuses on long-term partnerships with local farmers to enhance production and quality.

Kuwait

FMD Outbreak Slashes Kuwait's Milk Production by 75%

Kuwait is grappling with a severe outbreak of foot-and-mouth disease (FMD), affecting over 8,000 cows and slashing fresh milk production by 75% — from 250,000 to 100,000 liters (L) per day. The Public Authority for Agriculture Affairs and Fish Resources reported FMD cases in 31 of the country’s 44 cow farms, with 71 cow deaths and 952 recoveries. Vaccines are expected within two weeks, and authorities are urging strict sanitation and training measures to prevent further spread and support the struggling dairy sector.

New Zealand

Global Dairy Trade Auction Surges Amid Strong Demand from Asia

The latest Global Dairy Trade (GDT) auction in New Zealand recorded a sharp 4.6% overall price increase YoY, surpassing expectations. Whole milk powder rose by 6.2%, while cheddar and lactose prices surged by 12% and 16.8% respectively. The rally is driven by strong demand from Southeast Asia amid constrained milk supply in Europe, particularly in Germany, France, Belgium, and the Netherlands. Market analysts also cite trade tensions between the US and China as a factor boosting New Zealand’s dairy exports. Whole milk powder prices are now 24.5% higher year-on-year (YoY).

Russia

Milk Sales Up 2.7% in Russian Agricultural Sector

As of April 28, 2025, daily milk sales by Russian agricultural enterprises reached 59,100 tons, a 2.7% YoY increase, according to the Ministry of Agriculture. Key contributors with over 2,000 tons daily include Tatarstan, Udmurtia, Krasnodar Krai, and Voronezh and Kirov regions. National average daily yield per cow rose by 0.9 kilogram (kg) to 23.5 kg, with top-performing regions—Krasnodar, Stavropol, and several oblasts—reporting over 28 kg per cow.

Russia Boosts Drinking Milk Output by 3.7% in Q1-2025

In Q1-2025, Russia produced over 1.5 million tons of drinking milk, up 3.7% YoY. Output also rose for butter (+4.3%), curd (+2.5%), ice cream (+2.1%), yogurt (+2.5%), and milk powders (+19.5%). The growth is linked to stronger consumer demand amid rising real incomes. The sector benefits from over USD 1 billion (RUB 80 billion) in federal support, including subsidized loans and processing cost reimbursements. Further production growth is expected by year-end.

Spain

Galicia’s Milk Output Drops Amid Shrinking Number of Dairy Farms

Galicia’s milk production fell by 0.78% YoY in Q1-2025 to 759,500 tons, reflecting the ongoing decline in active dairy farms, now numbering just 5,100—down from 15,000 two decades ago. Despite stable prices and favorable contracts, larger farms face regulatory caps and a lack of generational succession. Galicia still produces 40% of Spain’s milk, but structural challenges raise concerns over future supply and pricing dynamics.

Ukraine

Milk Prices in Ukraine Stabilize Amid High Supply and Weak Demand

As of May 5, the average purchase price for three grades of milk in Ukraine was USD 0.41/kg (excluding VAT), down by USD 0.001 from a month earlier. Prices either slightly declined or remained unchanged across all grades, with extra-grade milk dropping to USD 0.42/kg. The domestic market saw high raw milk supply but weak demand for finished dairy products. However, rising export volumes have reduced stockpiles, supporting the profitability of processing high-grade milk. Potential price growth may be limited by the European Commission’s (EC) planned cancellation in June of autonomous trade measures (ATMs), which have allowed Ukrainian dairy exporters duty- and quota-free access to the European Union (EU) since 2022. Ukraine’s dairy associations have appealed to the EU to extend these measures beyond June 5, 2025, to support the sector during ongoing national challenges and aid integration into the European market.

United States

California Ensures Milk Safety with Comprehensive Testing and Oversight

Milk and dairy products are essential to many Californians' diets, and the California Department of Food and Agriculture (CDFA) is committed to ensuring their safety. The Milk and Dairy Food Safety Branch (MDFS) oversees all aspects of milk safety, from farm inspections to transportation and processing plant licensing. The CDFA tests Grade-A milk products at least four times every six months for microbiological standards and conducts regular inspections of milk plants and pasteurization equipment. Milk samples are tested at the UC Davis/California Animal Health and Food Safety Lab, maintaining strict safety standards. California continues its partnership with the Food and Drug Administration (FDA) under the national Grade-A Milk Safety Program to ensure the safety of dairy products.

Vietnam

Strong Growth in Vietnam's Dairy Imports in Q1-2025

In Q1-2025, Vietnam saw a significant increase in dairy imports, reaching nearly USD 340 million, a 39% rise compared to the same period in 2024. New Zealand, the US, Australia, Ireland, and Thailand were the main suppliers. New Zealand led with USD 126 million, a 104% increase from last year. Other notable increases include Australia (32% growth) and Ireland (48% growth). However, imports from the US dropped by 46%. Southeast Asia and the EU also saw strong growth in dairy exports to Vietnam, with imports from these regions rising 37% and 48%, respectively.

2. Weekly Pricing

Weekly Powdered Milk Pricing Important Exporters (USD/kg)

Yearly Change in Powdered Milk Pricing Important  Exporters (W19 2024 to W19 2025) 

Belgium

Driven by tight supply conditions, Belgium’s powdered milk price in W19 was USD 3.97/kg, showing a 0.25%week-on-week (WoW) decline  and no month-on-month (MoM) change, but a notable YoY increase of 7.30%. Persistent high input costs, labor shortages, and an aging farming population continue to limit production expansion, while strong global demand—especially from emerging markets—sustains upward pressure. Despite slight weekly stabilization, structural constraints in supply and robust international interest are maintaining elevated price levels.

Netherlands 

In W19, powdered milk prices in the Netherlands reached USD 2.43/kg, reflecting a 1.67% WoW and 2.53% MoM increase, as prices have maintained an overall positive trend in recent weeks. This upward movement is driven by a combination of moderately improved supply conditions and firm global demand, particularly from China and Southeast Asia, which continues to support export momentum. Although domestic supply has improved slightly, it remains relatively tight, limiting price relief. Meanwhile, YoY prices are still 1.62% lower, primarily due to tighter supply conditions and stronger prices during the same period last year. The looming threat of FMD across parts of Europe could further constrain supply and introduce additional price volatility in the coming weeks.

France

In W19, France’s powdered milk price rose to USD 2.81/kg, reflecting a 1.81% WoW and 1.08% MoM increase, following a period of price stagnation. The recent uptick is attributed to short-term logistical disruptions and slightly firmer demand from buyers. However, prices remain 17.84% lower YoY, primarily due to significantly tighter supply during the same period last year. In contrast, current supply levels have improved as producers shift from organic back to conventional milk, boosting output. Meanwhile, weak domestic demand recovery and intense export competition—particularly from Germany—continue to weigh on the market, preventing any sharp upward movement. The overall environment remains bearish, but temporary market adjustments have prompted the latest modest price gains.

3. Actionable Recommendations 

Strengthen Local Dairy Production

Countries like Indonesia should replicate successful initiatives such as importing high-quality dairy cows to boost local production. Governments can also support private sector involvement by offering flexible import policies, streamlining livestock importation procedures, and providing training programs for farmers to increase dairy cattle populations, enhance milk yields, and reduce dependency on imports.

Stabilize Prices through Efficiency

Dairy producers, particularly in regions experiencing price fluctuations, should focus on optimizing supply chains by adopting modern farming techniques, automation, and improved animal nutrition. These innovations can help stabilize milk production costs, increase yield per cow, and reduce vulnerability to supply chain disruptions, which is crucial in markets like the EU, where production efficiency and cost management are key.

Support Sustainable Dairy Farming

To combat the shrinking number of dairy farms, governments should introduce policies that support younger generations of farmers, provide financial incentives for adopting sustainable farming practices, and invest in farm modernization initiatives. These steps will help address structural challenges, such as generational succession, and ensure the long-term viability of dairy farming, especially in regions like Galicia, Spain, where farm numbers are rapidly declining.

Sources: Tridge, Agriland, Agro Times UA, Dairy Business, Dairy News Today, Gulf News, Milk News, Nieuwe Oogst, Nong Nghiep Moi Truong, Panen News