The USDA GAIN report forecasts a slight decrease in milk production in the EU in 2025, largely due to lower cow's milk production caused by lower profits, environmental constraints, and disease outbreaks among large producers, leading to fewer cows and a slight decrease in milk yields. However, this is expected to be partially offset by lower fluid milk consumption. Cheese production is predicted to increase in 2025, contributing to the dairy industry's dominance, with stable domestic consumption and continued export demand. In contrast, butter production is expected to decrease in 2025 as processors shift to cheese production due to lower milk supply, although butter exports are forecast to recover slightly from 2024.