Expert Opinion
Gеorgiі Kukhaіleshvili
analyst
Association of Milk Producers

Global Dairy Market: Producing Milk Becomes More Expensive in 2025

According to AHDB, global milk production in 2024 was significantly impacted by rising production costs in regions such as Argentina, Australia, China, Ireland, New Zealand,…

Gеorgiі Kukhaіleshvili
analyst
Association of Milk Producers

The Global Dairy Market Has Entered a Period of Calm

According to Rabobank, in the second half of 2024, the supply of raw milk improved in regions exporting dairy products amid declining demand from dairy…

Foot-and-Mouth Disease Creates Price Risks for Europe's Dairy Industry

In March, raw milk prices decreased slightly, despite the seasonal increase in milk yield due to warm spring weather. An outbreak of foot-and-mouth disease in European countries may contribute to a further decline in raw milk prices, according to Georgii Kukhaleyishvili, an analyst at the Association of Milk Producers of Ukraine.

According to preliminary data from the European Commission, the average price for raw milk in the EU in March 2025 was 53.65 euro cents per kg, which is 0.4% less than in February 2025. Compared to the price in March 2024, milk in the EU has become 16% more expensive. In March, the price for extra grade milk in Ukraine was 41.62 euro cents per kg, which is not much lower than the prices for raw milk in Slovakia and Portugal.

Compared to February, the price for raw milk increased in 10 EU member states. Among the major producers and exporters of dairy products, raw material prices increased in Poland to 54.68 euro cents per kg (+0.2%) compared to February 2025. The largest price increases were in Sweden to 59.16 euro cents per kg (+2.6%), Hungary to 52.16 euro cents per kg (+1%), Belgium to 54.37 euro cents per kg (+0.9%), and the Czech Republic to 51.21 euro cents per kg (+0.9%).

In March, purchase prices did not change in Germany, Denmark, Ireland, Greece, Spain, Italy, Portugal, and Cyprus compared to February of this year.

Over the last month, raw milk became cheaper in 8 countries. The largest price decreases were observed in Slovakia to 44.40 euro cents per kg (-7.2%) and Lithuania to 52.84 euro cents per kg (-3.9%).

The most expensive raw milk is in Cyprus (66.64 euro cents per kg), Malta (60.73 euro cents per kg), and Sweden (59.16 euro cents per kg). The lowest milk prices are received by farmers in Slovakia (44.40 euro cents per kg) and Portugal (45.87 euro cents per kg).

Compared to March 2024, raw milk prices increased in 25 European countries and decreased only in Spain (-3.1%). Compared to the same period last year, milk prices increased the most in Ireland (+36%), Sweden (+33%), Lithuania (+24.8%), Belgium (+24%), and Hungary (+24%).

Georgii Kukhaleyishvili notes that in March, raw milk prices in Europe decreased slightly. On the one hand, milk production in Europe continued to grow under the influence of warm weather. However, according to the USDA, despite the seasonal increase in milk yield in spring, the milk yield was still lower than the figures for the same period last year. According to Rabobank, in the northwestern region of Europe, namely in countries such as Denmark, Germany, the Netherlands, and Belgium, there are signs of a reduction in milk production due to a prolonged decline in farm profitability, rising production costs, environmental restrictions, labor shortages, and more severe weather conditions. Stricter water quality requirements and reduced use of mineral fertilizers may accelerate the rate of decline in milk production.

In addition, the asparagus season continued in Europe in March, during the preparation of which butter is used. This factor likely influenced demand from dairy processing enterprises and restrained raw milk prices from a more significant decrease.

The outbreak of foot-and-mouth disease in Hungary and Slovakia and the likelihood of the disease spreading to Poland and Austria create prospects for a further reduction in purchase prices. Dairy processing enterprises in Poland and Austria export significant volumes of dairy products, and in the event of quarantine, they may switch to the production of long-shelf-life products, including butter or skimmed milk powder. The accumulation of butter and skimmed milk powder in warehouses in Europe may put pressure on prices for finished products and raw milk.

Press Service of the Association of Milk Producers


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