1. Weekly News

Bangladesh

Bangladesh Targets Milk Self-Sufficiency to Reduce USD 327 Million in Annual Imports

Bangladesh plans to enhance domestic milk production to reduce its annual import of 118,000 metric tons (mt), which costs the country approximately USD 327.25 million (BDT 40 billion), according to Fisheries and Livestock Adviser. Speaking on World Milk Day 2025, she emphasized the need for quality milk production and suggested subsidies for the livestock sector similar to agriculture. The government also aims to support milk sources beyond cows, including buffalo and goats and is considering incentives for livestock farmers to strengthen self-sufficiency.

Serbia

Serbian Dairy Sector Faces Crisis with Unprofitable Production and Market Instability

Serbian dairy farmers face a severe crisis marked by unprofitable milk production and an unstable market. Large imports of milk powder, often diluted and sold illegally as fresh milk, undermine domestic producers. In addition, uncontrolled imports of cheaper vegetable-based cheeses, falsely marketed as milk cheese, flood the market, further depressing prices and harming local cheese makers. Despite government subsidies, these measures are insufficient and delayed, with farmers waiting months for payments. The Ministry of Agriculture, Forestry and Water Management's lax import licensing and lack of quality control exacerbate the situation. The national herd size is inadequate to meet demand, forcing reliance on imports. Export opportunities are limited due to high aflatoxin levels in milk, which exceed European Union (EU) standards, primarily caused by poor-quality animal feed. Consequently, Serbian dairy farmers struggle with low purchase prices, limited market access, and regulatory challenges, threatening the sustainability of the domestic dairy sector.

Ukraine

Ukraine's Apr-25 Milk Production Rises MoM but Declines YoY Amid Conflict and Market Challenges

In Apr-25, Ukraine's raw milk production reached 604,000 mt, up 9% from Mar-25 but down 4% year-on-year (YoY), totaling 2.05 million metric tons (mmt) from Jan-25 to Apr-25, a 4% decline compared to the previous year. Enterprises contributed 45% of production, with households providing 55%. While dairy farms increased output by 5% YoY, household milk production fell by 12%. Regional production varied due to factors including conflict-related disruptions and market uncertainties. Domestic processors face challenges competing with imports and outdated technology, leading to low milk purchase prices amid rising production costs. Export prospects to the EU may weaken if current trade benefits expire, while domestic demand is pressured by conflict impacts and increased cheese imports, limiting sales for local producers.

United Kingdom

GB Milk Production Remains Strong After Record Spring Peak

Great Britain milk deliveries have likely passed their spring peak, with daily volumes reaching a record 39.02 million liters (L) on May 4, 2025. Despite this, production remains strong, with the 2025/26 season up 5.8% YoY as of mid-May-25. Favorable weather, improved dairy economics, and a near 20-year high in the milk-to-feed price ratio continue to support output. While continental Europe faces tighter supply, the United Kingdom (UK) market remains optimistic. Processing capacity constraints and evolving grass growth will determine how long record volumes can be sustained.

United States

Idaho Defies National Trend with Rising Milk Output as US Dairy Supply Tightens

Idaho's dairy industry continues to expand, reaching USD 3.9 billion in milk value in 2024, driven by low production costs, favorable regulations, and strong feed availability. While overall United States (US) milk output declined by 2% YoY, Idaho increased production by 1.2%, with the highest milk-per-cow yield among major states. In contrast, traditional West Coast producers like California and Oregon saw output fall due to environmental regulations, high costs, and consolidation. Industry-wide, milk supply remains tight due to farm closures and more beef-on-dairy breeding, though demand and consumer preference for dairy remain strong.

2. Weekly Pricing

Weekly Powdered Milk Pricing Important Exporters (USD/kg)

Yearly Change in Powdered Milk Pricing Important Exporters (W22 2024 to W22 2025) 

Belgium

In W22, Belgium's wholesale milk price rose to USD 3.16/kg, an increase of 1.94% week-on-week (WoW) but down 20.40% month-on-month (MoM) from USD 3.97/kg. The sharp monthly decline reflects a temporary market correction as buyers paused amid uncertainty following a period of elevated prices. However, the 16.18% YoY decrease indicates weaker price levels compared to last year, suggesting that supply-side pressures such as lower milk production, higher feed and energy costs, and stricter environmental regulations are being offset by other factors, such as softer demand and increased imports. Despite the recent dip, prices could stabilize or rebound if structural supply constraints persist.

3. Actionable Recommendations

Strengthen Domestic Milk Production and Farmer Support

Governments in countries with high milk import dependence, such as Bangladesh, should introduce comprehensive subsidy programs for the livestock sector akin to those in agriculture. These subsidies should incentivize farmers to increase production not only from cows but also from alternative dairy sources like buffalo and goats. Additionally, financial incentives and training programs for livestock farmers can enhance self-sufficiency, reduce import costs, and improve milk quality, strengthening domestic dairy markets.

Strengthen Regulatory Controls and Quality Standards to Protect Domestic Dairy Producers

In markets like Serbia, policymakers must tighten import licensing procedures and enforce strict quality control to prevent the influx of adulterated milk powder and mislabelled vegetable-based cheeses that depress local prices. Enhanced monitoring and timely disbursement of subsidies to dairy farmers will help stabilize incomes and encourage herd expansion. Moreover, improving feed quality standards is critical to reducing aflatoxin contamination, enabling compliance with EU export regulations and improving market access.

Sources: Tridge, Vreme, Capital Press, AHDB, Bangladesh Sangbad Sangstha, Interfax