Original content
The China Dairy Industry Association convened an industry meeting to address challenges such as declining milk production (-2.8% year-on-year in 2024), excess raw milk, and financial losses from surplus milk powder. Key recommendations included increasing consumer demand through diversified products, stabilizing upstream supply with financial support, enhancing regulatory frameworks, and improving processing efficiency. Experts suggested optimizing herd management and seizing export opportunities as domestic milk prices fall below international levels. Industry leaders called for policy support and innovation to navigate cyclical downturns and drive long-term growth.
Malaysia has lifted its ban on thermally processed milk and dairy imports from Germany, following a similar decision by China. The restrictions, imposed in Jan-25 due to a foot-and-mouth disease (FMD) outbreak in Germany, were removed after negotiations between the two countries. Malaysia is Germany’s third-largest non-European Union (EU) dairy export market, with shipments totaling 38,600 tons worth USD 66.4 million in 2023. With Germany regaining its disease-free status, officials aim to reopen more markets for dairy exports.
The Irish Department of Agriculture, Food and the Marine (DAFM) is reinforcing protective measures following new FMD outbreaks in Slovakia and Hungary. No FMD-susceptible animals have been imported into Ireland from affected regions since January 1, 2025. The Minister of agriculture urged vigilance, warning that an outbreak would severely impact Ireland’s livestock trade. Authorities stress strict biosecurity for travelers from affected countries. If FMD were detected in Ireland, immediate culling, movement restrictions, and market access losses would follow. The last recorded case in Ireland was in 2001.
Poland's milk production growth rate significantly outpaces the EU average, with a 3.9% YoY increase in 2024 compared to the EU's 0.6%. Strong global dairy prices, including record butter prices in New Zealand, have supported the sector, though a strong Polish złoty (PLN) has weakened export competitiveness. Despite a 7.5% YoY rise in dairy export value, the increase was just 1.4% in PLN terms. If Dutch milk production continues to decline, Poland could surpass the Netherlands in 2025, becoming the EU's third-largest producer.
Poland has imposed an import ban on cloven-hoofed animals, fresh meat, raw milk, and related products from Slovakia following confirmed FMD outbreaks. Effective immediately, the ban will remain in place until the European Commission (EC) implements necessary measures. Veterinary inspections, police, and customs authorities are conducting strict border controls. Czech authorities had already restricted Slovakian livestock transport before the official confirmation. While FMD poses no major risk to humans, it causes severe economic losses in agriculture, requiring mass culling of infected and at-risk animals.
The Russian Federal Antimonopoly Service (FAS) has identified raw milk producers in certain regions with signs of dominant market positions and profitability exceeding industry averages. As a result, the agency is conducting additional inspections. While most regional raw milk markets remain competitive, FAS is monitoring pricing and sales chains closely. Earlier this month, over 90 producers were asked to provide financial and sales data for 2022-2024 to assess market conditions.
Slovakia has confirmed three FMD outbreaks in cattle farms in Dunajská Streda district, near the Hungarian border, marking the first cases in over 50 years. Authorities have imposed strict movement bans on susceptible animals, canceled livestock events, and ordered disinfection protocols. Infected and at-risk animals will be culled. Hungary has reinforced its own measures following Slovakia’s confirmation.
_21.05.34.png)
Milk prices in Germany remain significantly higher than last year, with a YoY increase of 34.36% to USD 4.81 per kilogram (kg), while week-on-week (WoW) and month-on-month (MoM) prices increased more moderately by only 0.42% and 3.89%, respectively, indicating a slower pace of growth despite elevated prices. Supply remains tight due to FMD in German cattle in earlier months, a shrinking number of dairy farms, high production costs, and adverse weather conditions, limiting production. However, exports have strengthened as Malaysia lifted its ban on thermally processed milk, following a similar move by China, restoring access to key non-EU markets. Although improved cow productivity has helped mitigate some shortages, overall supply constraints continue to drive prices upward.
Milk prices in Belgium remain unchanged YoY, at USD 3.84/kg in W12, reflecting stable market conditions and seasonality typical for this time of year. However, WoW prices increased slightly by 0.52% and MoM prices climbed by 2.40%, indicating slight upward pressure due to rising farming costs and ongoing labor shortages, despite seasonal improvements in production from cooler temperatures. The long-term decline in dairy farming, driven by an aging farming population and farmer exits, continues to tighten supply, keeping prices from dropping further even amid weaker demand.
Milk prices in the Netherlands increased 0.43% WoW and 5.36% MoM to USD 2.24/kg, but remained 11.61% lower YoY. The increase is driven by tight milk supplies and unfavorable weather conditions, including excessive rainfall and flooding, which disrupted grazing and silage production, as well as cooler-than-average temperatures that slowed pasture regrowth, limiting natural forage supply. These factors have constrained production, supporting short-term price increases. However, weaker demand compared to previous years and shifting export dynamics have contributed to the overall YoY decline, reflecting a market adjusting to reduced domestic consumption.
Milk prices in France increased by 3.45% WoW to USD 2.70/kg in W12. This rebound is due to the earlier price decline in W10, which had been driven by a temporary drop in milk prices and weaker demand. Despite this recovery, both MoM and YoY prices remain lower by 14.29% and 19.16%, respectively, due to the earlier drops and the overall market's adjustment to previous supply-driven price spikes. France's market is experiencing an increase in milk supply, which has alleviated earlier constraints, but continued weak demand is still exerting downward pressure on prices.
In light of China's declining demand for dairy and the ongoing overcapacity issues, it is essential for dairy producers to explore product diversification strategies. This could include developing alternative dairy products such as lactose-free milk, plant-based dairy alternatives, or value-added products like yogurt and cheese. Expanding product offerings will help cater to shifting consumer preferences and broaden market appeal, particularly as demand for traditional dairy products weakens.
In light of the FMD outbreaks in Ireland, Poland, Germany, Slovakia, and many other countries, improving biosecurity measures is critical. Dairy producers across Europe should adopt stricter biosecurity protocols to prevent disease outbreaks, which can severely impact livestock production and international market access. Enhanced monitoring and early detection systems will also help limit the economic damage caused by such outbreaks.
To ensure long-term growth in the face of cyclical downturns, dairy producers must focus on sustainability, both in terms of environmental impact and economic viability. This includes adopting practices that improve farm efficiency, reduce waste, and enhance animal welfare, which can result in improved productivity and better market acceptance. Sustainability efforts can also resonate with increasingly health-conscious and environmentally aware consumers, boosting demand for sustainably produced dairy products.
Sources: Tridge, Farmer PL, Milk News, News Food Mate, Sady Ogrody, Sinor
Read more relevant content
Recommended suppliers for you
What to read next
