The dairy sector in the EU is currently struggling with slim margins due to high input costs and low milk prices, as indicated by a USDA GAIN report. The milk price peaked in 2022 and has since dropped and partially recovered. The sector in Western Europe is also facing multiple production limiting factors such as restrictive environmental regulations and disease outbreaks of the Bluetongue Virus and Epizootic Hemorrhagic Disease. These factors have led to a reduction in the dairy cow herd in countries like France, Germany, the Netherlands, and Belgium in 2024. Wet conditions in spring and early summer of 2024 have also negatively affected local fodder production in Northwestern Europe.