EU dairy industry faces challenges from cattle diseases and regulations

The USDA GAIN report highlights the challenges faced by the EU dairy industry, with the sector experiencing low profitability due to high production costs and fluctuating milk prices. The industry is also under pressure from environmental enforcement and disease issues. The end of the nitrogen exemption has forced Dutch and Irish farmers to reduce dairy cattle numbers. Additionally, bovine viral diseases like bluetongue and epizootic haemorrhagic disease have led to temporary milk yield reductions, fertility problems, and increased mortality. Furthermore, high humidity in spring and early summer of 2024 hindered cattle grazing, affecting feed production. The most significant decrease in dairy cow numbers in 2024 is anticipated in France, Germany, the Netherlands, and Belgium.

According to the latest report from the USDA Global Agricultural Information Network (GAIN), the dairy industry across the EU is struggling with low profitability due to high production costs and relatively low milk prices. Milk prices peaked in 2022, fell sharply in 2023, and have only partially recovered this year. In addition to price volatility, the dairy industry in Western Europe faces multiple environmental enforcement and disease pressures that are impacting production. The EU’s decision to end the nitrogen exemption, which allowed excess manure to be used on pastures, has forced Dutch farmers to slaughter some dairy cattle. In Ireland, restrictions on the nitrogen exemption have led to a reduction in beef cattle numbers to preserve dairy herds. Another factor is the outbreak of bovine viral diseases such as bluetongue type BTV-3 - mainly in north-western Europe (northern France, the Netherlands, Belgium, Germany, Denmark) - and epizootic haemorrhagic disease (EHD), which ...