The USDA GAIN report highlights the challenges faced by the EU dairy industry, with the sector experiencing low profitability due to high production costs and fluctuating milk prices. The industry is also under pressure from environmental enforcement and disease issues. The end of the nitrogen exemption has forced Dutch and Irish farmers to reduce dairy cattle numbers. Additionally, bovine viral diseases like bluetongue and epizootic haemorrhagic disease have led to temporary milk yield reductions, fertility problems, and increased mortality. Furthermore, high humidity in spring and early summer of 2024 hindered cattle grazing, affecting feed production. The most significant decrease in dairy cow numbers in 2024 is anticipated in France, Germany, the Netherlands, and Belgium.