EU-28: A Perfect Storm for EU Dairy Prices

  |   Attaché Report (GAIN)

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Milk production margins in the European Union (EU) have turned negative in recent months as EU farmers continued to increase production following the end of the EU dairy quota system on April 1, 2015, while ignoring decreasing world dairy demand. The extension of the 2014 Russian embargo on agricultural imports has added additional downward pressure on dairy markets. This has led farmers in France to start protests, blocking roads, but also retail distribution centers and supermarkets. Belgian and U.K. farmers soon joined these protests that will culminate in Brussels during the September 7 special Agricultural Council meeting. Long-term outlook for global dairy demand remains promising, even if the current sluggish dairy market situation may not disappear overnight.

EU-28: A Perfect Storm for EU Dairy Prices

Europe and Eurasia, European Union

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