The European Union's dairy sector is expected to see a decrease in cow's milk production in 2023, despite increases in cow productivity, due to a reduction in the herd size. Factors contributing to this include the new Common Agricultural Policy (CAP) and Farm to Fork strategies, as well as a EU-wide drought in 2022 that increased production costs and raised raw milk selling prices. The dairy sector is also facing uncertainty due to the growth in production of non-cow's milk in Mediterranean countries. However, production of milk for products with geographical indications has been hampered by feed shortages and production halts due to feeding standard requirements.