1. Weekly News

Europe

EMB Calls for Urgent Structural Reforms to Secure Sustainable Milk Production

At its recent general meeting, the European Milk Board (EMB) emphasized that despite progress in achieving more cost-covering producer prices, fundamental challenges in the dairy sector persist and require immediate action. EMB leaders highlighted the need for real prices that include profit margins and criticized current market regulation, which relies on farm bankruptcies to control production. The EMB urges decisive political reforms, including proactive market stabilization measures, stronger collective bargaining by producer organizations, legislation prohibiting prices below production costs, binding fair contracts, and inclusion of cooperative processors in the market framework. Additionally, the EMB calls for reducing bureaucratic burdens that drive farmers out of production and limit investment. EMB stresses that without these structural reforms, Europe's dairy sector faces decline, and sustainable, crisis-resilient milk production depends on swift implementation.

Brazil

Milk Prices in Goiás Decline in Jun-25 Amid Broader Dairy Market Downturn

Released on June 30, 2025 by the State Secretariat of Agriculture, Livestock and Supply (SEAPA), the Goiás Dairy Sector Market Bulletin showed a month-on-month (MoM) decline in the average prices of the main dairy products in Goiás. The survey was conducted by the Technical and Conciliation Chamber of the Dairy Chain of Goiás, a specialized body dedicated to fostering dialogue and technical collaboration within the state's dairy sector.

The bulletin reported bulk cream was the item with the biggest decline in value during the period, registering a decrease of 8.34% compared to the previous month. Subsequent declines were seen in the prices of mozzarella cheese (-2.66%), whole ultra-high temperature (UHT) milk (-1.73%), and whole milk powder (-1.10%). On the other hand, condensed milk showed the smallest negative variation, with a reduction of 0.67% MoM. According to SEAPA, “when considering the relative weights of each item in the composition of the dairy products basket, the average variation in the month of Jun-25 was -2.18%”.

Chile

Chile’s Raw Milk Receipts Rise 8.3% YoY in Early 2025, Driven by Growth Among Leading Processors

Between Jan-25 and Apr-25, Chile’s raw milk intake grew by 8.3% year-on-year (YoY), reaching 776.8 million liters (L), according to the National Federation of Milk Producers of Chile (Fedeleche). The six largest processors, accounting for 95.6% of the market, generally increased their volumes. Colun led with a 10.2% rise, followed by Nestlé (+15.4%), Soprole-Prolesur (+9.4%), Watt's (+2.3%), and Quillayes-Surlat (+4.1%). In contrast, Grupo Lactalis and Chilolac saw declines of 1.1% and 25.5%, respectively. Despite some variations, the overall increase in milk receipts reflects a strong start for Chile’s dairy sector in 2025.

Indonesia

Indonesia Imports 1,573 Australian Dairy Cows to Boost National Milk Production and Support Farmers

Indonesia's Ministry of Agriculture (Kementan) announced the arrival of 1,573 imported pregnant dairy cows from Australia to strengthen the national dairy herd and support local farmers' productivity. Part of the National Dairy and Meat Production Acceleration Program (P2SDN), this importation aims to help Indonesia reach its target of one million dairy cows by 2029. As of W27, domestic fresh milk production meets only about 21% of national demand. The government assured that all imported cows passed strict health protocols and will undergo quarantine and inspections to ensure animal health and food safety, supporting increased milk production and food security.

Kazakhstan

Kazakhstan Introduces First Industrial Production of Hypoallergenic A2 Milk

Molcom-Pavlodar, a dairy processing company based in Pavlodar, announced the launch of Kazakhstan's first industrial production line for hypoallergenic A2 milk, which lacks the beta-casein A1 protein. Located in Pavlodar Oblast, the project uses purebred dairy cows with the A2A2 genotype, producing milk that is easier to digest and safer for individuals allergic to conventional cow's milk. This initiative aims to develop Kazakhstan’s hypoallergenic dairy industry, improving public health and food safety, following trends already established in countries like New Zealand, Japan, and France.

Russia

Rising Production Costs and Falling Milk Prices Strain Russian Dairy Sector in May-25

In May-25, Russia's milk production operating cost index (RMCI) rose to 100.2%, reflecting a 0.2% MoM increase and an 11.8% rise YoY, according to the National Dairy Producers Union (Soyuzmoloko). The cost increase was driven by higher feed prices, rising electricity tariffs, inflation, and labor expenses. Although declines in diesel and feed additive prices, along with a stronger ruble, helped temper the rise, producers remain pressured. Meanwhile, raw milk prices fell 4.1% MoM in May-25, despite being 25.5% higher YoY, undermining producer profitability and investment capacity amid sustained cost inflation.

South Korea

South Korea Faces Calls for Stricter Milk Origin Labeling Following Rising Sterilized Milk Imports

In South Korea, concerns are rising over consumers' inability to identify the country of origin for milk used in coffee and desserts made with imported sterilized milk. Under current regulations, food products like lattes must label milk origin only if produced by confectionery or processing businesses. Restaurants and cafes are exempt, as milk is excluded from mandatory labeling. Domestic dairy officials advocate for a stricter country-of-origin labeling system and greater promotion of the ‘Domestic Milk Use Certification (K-MILK)’ to support local milk. This follows a decline in per capita plain milk consumption in South Korea and a steady rise in sterilized milk imports, which increased 30.2% YoY to 49,000 metric tons (mt) in 2024. The industry emphasizes the need for clearer labeling to protect domestic producers and inform consumers.

2. Weekly Pricing

Weekly Powdered Milk Pricing Important Exporters (USD/kg)

Yearly Change in Powdered Milk Pricing Important Exporters (W27 2024 to W27 2025) 

Germany

In W27, Germany's milk prices declined slightly by 0.64% week-on-week (WoW) to USD 3.10/kg but remained 6.16% higher YoY from USD 2.92 per kilogram (kg) in W27 2024. The price moderation reflects Germany’s continued production shortfall, milk output fell 1.1% YoY in Apr-25 and is 2.1% below 2024 levels for January–April, according to the Statistical Office of the European Union (Eurostat).

While broader European Union (EU) production is recovering, Germany's structural and regulatory constraints have kept domestic supply tight, supporting elevated prices. However, sustained production gains elsewhere in the EU may exert downward pressure on German prices in the medium term if demand does not keep pace.

Netherlands

In W27, milk prices in the Netherlands rose by 0.72% WoW to USD 2.79/kg, showing a sharp 22.91% YoY increase from USD 2.27/kg. This upward trend reflects strong domestic price momentum amid broader concerns about supply disruptions. However, potential animal health risks could weigh on market stability. The European Food Safety Authority (EFSA) has flagged the risk of H5N1 avian influenza entering the EU from the United States (US) via raw milk trade or migratory birds. Given the Netherlands’ coastal location and status as a key EU dairy producer, early virus detection remains a concern. While the US strain has not been identified in Europe and there is no current evidence of person-to-person transmission, further outbreaks could affect dairy production logistics and consumer confidence.

In the short term, prices may remain elevated due to tight supply and biosecurity concerns. Prolonged health threats or trade disruptions could impact export flows, dampen demand, or trigger stricter regulatory controls, potentially altering price dynamics later in the year.

France

France's milk prices increased by 2.15% WoW to USD 2.85/kg in W27, representing a notable MoM surge of 18.26% from USD 2.41/kg in W24. This upward trend reflects tightening supply conditions amid growing concerns over animal health risks, particularly following the confirmed outbreak of Lumpy Skin Disease (LSD) in France.

Although LSD does not affect human health or milk safety, its impact on cattle health, through reduced milk yield and reproductive issues, can significantly disrupt farm productivity. As containment measures and animal movement restrictions are enforced, short-term supply constraints could intensify, potentially sustaining or further elevating milk prices in the coming weeks. Market volatility may also increase due to consumer misinformation regarding milk safety. If not countered effectively, this could dampen demand despite stable product safety. However, coordinated efforts by French authorities, alongside the World Organisation for Animal Health (WOAH) and EU partners, may help stabilize market confidence.

3. Actionable Recommendations

Implement Structural Market Reforms to Safeguard EU Dairy Viability

European policymakers should enact binding legislation prohibiting milk prices below production costs, support fair contracts, and reduce regulatory burdens on farmers. Strengthening collective bargaining power for producer organizations and including cooperative processors in the regulatory framework will enhance price transparency and protect producers from insolvency-driven market adjustments, as urged by the EMB.

Expand Domestic Milk Production Capacity in Import-Dependent Countries

Countries like Indonesia, where domestic supply meets only 21% of demand, should intensify efforts to scale local production by supporting strategic cattle imports, facilitating farm infrastructure investment, and enhancing technical training for farmers. These initiatives will reduce import dependency, improve food security, and align with national production targets such as Indonesia’s 2029 dairy herd goal.

Promote Value-Added and Niche Dairy Segments to Boost Competitiveness

Governments and private stakeholders should invest in developing high-value and differentiated dairy products, such as Kazakhstan’s hypoallergenic A2 milk. Supporting innovation in functional dairy and health-oriented segments can improve profitability, meet evolving consumer preferences, and create new market opportunities, particularly in export-driven or saturated domestic markets.

Sources: Tridge, Agro Link, Oil World, Portal del Campo, Foodmate, Sinor, AFL, Republika, Word Organisation for Animal Health, Yahoo News, European Foods Agency News