EU dairy sector struggles with environmental regulations, disease outbreaks

Published 2024년 10월 17일

Tridge summary

The dairy sector in the EU is currently struggling 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 dealing with production limiting factors such as environmental regulations and disease outbreaks. In the Netherlands and Ireland, farmers are reducing herd sizes due to changes in manure and nitrate derogations. The sector has also been impacted by the Bluetongue Virus and Epizootic Hemorrhagic Disease, causing a temporary drop in milk yield and fertility problems. Wet conditions in spring and early summer of 2024 have also forced cattle indoors, negatively affecting local fodder production and leading to the most significant reductions in the dairy cow herd in France, Germany, the Netherlands, and Belgium.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Throughout the EU, the dairy sector is facing slim margins due to high input costs and relatively low milk prices, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report. The milk price peaked in 2022 (see graph below), dropped in 2023, after which it only partially recovered this year. At the same time, is the sector in Western Europe facing multiple production limiting factors related to restrictive environmental regulations and disease outbreaks (for more information see Dairy and Products Semi-annual, published on May 22, 2024). In the Netherlands, the loss of the EU derogation to spread a surplus of manure on pastures prompted farmers to slaughter a part of their dairy cow herd (for more information see the GAIN report - Dutch Loss of Manure Derogation). In Ireland, a reduction in applicability of the nitrate derogation has led to a cut in the beef herd in favour of maintaining the dairy herd. Another factor is the ...

Source: The Cattle Site