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Why Are Dairy Farmers Desperately Holding onto Their Cows in 2024? Uncover the Truth

Why are U.S. dairy farmers holding onto their cows amid a 20-year low in replacements? How is the beef-on-dairy trend reshaping the industry?

Summary: U.S. dairy farmers are shifting gears, sending fewer cows to slaughter to keep herd sizes stable. This move is driven by the profitable beef-on-dairy market, with high cash flows from selling beef-on-dairy calves. The drop in dairy replacements and rising heifer costs since September 2023 has led producers, especially in the West, to keep more cows, causing slaughter numbers to hit a 20-year low. The high value of week-old beef-on-dairy calves ($800 to $1,000 each) offers a profitable opportunity for dairy farmers, who are also investing in gender-sorted dairy semen to plan for future replacements. This trend shows no signs of reversal, presenting both challenges and opportunities.

  • Record drop in cow culling, reducing slaughter by 397,200 head over 10 months.
  • Shift driven by profitable beef-on-dairy market, boosting cash flow for dairy farmers.
  • Beef semen sales surged 276% from 2017 to 2023, with most sales to dairy farmers.
  • Dramatic decline in dairy replacements, pushing heifer costs to $3,000+ per head.
  • Week-old beef-on-dairy calves now fetching $800 to $1,000 each, a lucrative opportunity.
  • Growing trend of using gender-sorted dairy semen to ensure future heifer replacements.
  • Current trends show no signs of near-term reversal, creating both challenges and benefits.
dairy farming industry, crisis, beef-on-dairy concept, drop in dairy replacements, rising heifer costs, western areas, herd numbers, profit, cull cows, slaughter numbers, 20-year low, strategic move, beef-on-dairy market, economic incentives, milk production, high-yielding dairy cows, cattle semen sales, dairy-beef calves, $800 to $1,000, dairy cow replacements, scarcity, costs, auction markets, supply-demand mismatch, high pricing, profitable opportunity, demand, limited availability.

Imagine being a dairy farmer in 2024, facing a harsh reality in which every choice might make or break your existence. Farmers have been forced to reconsider their strategy due to the 2024 dairy crisis, mainly caused by a drop in dairy replacements and rising heifer costs. Are you interested in knowing why this is occurring and what it implies for the future of your farm? Since September 2023, dairy farmers in the United States have sent fewer cows to slaughter for 46 weeks, indicating a desperate attempt to protect their herd.

YearCows Sent to SlaughterBeef Semen Sales (in Millions)Dairy Replacements AvailableAverage Heifer Replacement Value
2017665,0002.51,000,000$1,200
2023606,0009.4800,000$2,800
2024397,0009.4709,100$3,000+

Why U.S. Dairy Farmers Are Clinging to Their Cows: Unraveling the Staggering Industry Shift

Since September 2023, dairy producers in the United States have kept more of their cows, especially in western areas. This strategic move was made due to a lack of dairy alternatives and high beef-on-dairy market pricing. Farmers want to protect their herd numbers and profit from the lucrative beef-on-dairy business by limiting the number of cows sent to slaughter.

The dairy business has seen the impact of a considerable decline in cull cows during the last ten months. Between January 1, 2024, and July 6, 2024, dairy producers in the United States slaughtered 259,400 fewer cows. Extending this pattern to September 2023, we observe a stunning reduction of 397,200. Culling numbers have fallen to a 20-year low in parts of the United States, including the West.

This rapid fall represents a strategic move as farmers stick to their herds, aided by a beef-on-dairy solid market. Record-high beef prices encourage producers to keep cows for extended periods to crossbreed calves, contributing to the historic low culling rate.

Beef-On-Dairy: The Game-Changer for Dairy Farmers’ Cash Flow 

The beef-on-dairy market is at the center of this movement, drastically altering the economic incentives for dairy producers. Traditionally, dairy producers prioritized milk production and keeping a consistent herd of high-yielding dairy cows. However, the growth in cattle semen sales to dairy producers has wholly transformed the scene. Farmers produce more lucrative calves for the meat market by inseminating dairy cows with beef semen.

This rise in cattle semen sales has improved cash flow for various reasons. First and foremost, dairy beef calves are much more expensive than purebred dairy calves. According to the National Association of Animal Breeders, beef semen sales will increase by 276% by 2023, with dairy producers receiving 84% of the proceeds. This move has resulted in week-old dairy-beef calves commanding between $800 and $1,000 each. The most excellent purebred dairy bull calves sell for less than half that amount.

The record prices for dairy-beef calves are partly due to the beef sector’s low feeder supplies, which have been at their lowest since 1972. This scarcity raises demand and, as a result, the price of beef-on-dairy calves, making it a very successful investment for dairy farmers. Dairy producers that include beef genetics in their herds do more than preserve their dairy cows for milk output. Still, they use high market prices for beef calves to boost their cash flow.

Beef Semen Sales Surge: A 276% Leap That’s Revolutionizing Dairy Farming

Some surprising facts support the enormous rise in beef-on-dairy initiatives. According to the National Association of Animal Breeders, beef semen sales to dairy producers in the United States have increased by an astounding 276% between 2017 and 2023. Specifically, sold units significantly increased from 2.5 million in 2017 to 9.4 million by 2023  [National Association of Animal Breeders].

Dale Woerner of Texas Tech University believes there are between 3 and 3.25 million beef-on-dairy animals in the United States. “The growth in this area has been exponential, creating a significant shift in both the dairy and beef industries,” says Woerner [Texas Tech University].

The Heifer Crisis: Soaring Prices and Scarce Supply Challenge Dairy Farmers

YearDairy Heifer Inventory (in 1,000s)
20044,200
20084,350
20124,500
20164,650
20204,300
20243,500

The effects of dairy cow replacements have been nothing short of remarkable. With the inventory of dairy heifer replacements at a 20-year low, scarcity pushes up costs. At auction markets nationwide, prices for dairy heifer replacements have risen beyond $3,000, indicating a significant supply-demand mismatch. This fast jump in replacement prices presents a considerable problem for dairy producers, who must now negotiate a more competitive market to renew their herds.

High Prices for Beef-On-Dairy Calves: A Golden Opportunity for Dairy Farmers

The current trend of high pricing for beef-on-dairy calves is a profitable opportunity for dairy producers. Week-old calves sell for between $800 and $1,000 a head, twice the price of the finest purebred dairy bull calves. This increase in value is caused by a combination of inadequate feeder supply and continued high demand from the beef industry. Because beef-on-dairy calves fetch such high prices, and it takes almost three years from a heifer’s pregnancy to her first calf, there are no indications of a near-term reversal. As demand for excellent beef rises and availability remains limited, dairy producers will prioritize this lucrative crossbreeding technique.

The Smart Bet on Heifers: Dairy Farmers Embrace Gender-Sorted Semen for Expansion

Meanwhile, dairy producers looking to expand their operations are increasingly resorting to gender-sorted dairy semen. This strategy ensures that more female calves, or heifers, are produced to replace old cows and sustain milk output. In 2023, 54% of all dairy bull semen sold in the United States was gender-sorted, representing a 5% rise over the previous year. This trend emphasizes the need for dependable replacements in an industry facing a dairy cow crisis.

The Bottom Line

The dairy farming environment in the United States is rapidly changing. Farmers resort to the beef-on-dairy concept to save their income flow when faced with a steep fall in dairy alternatives. While this trend gives a much-needed financial boost, it has resulted in a heifer shortage issue, raising replacement prices and forcing the sector to adjust. The increase in beef semen sales and the strategic shift to gender-sorted semen demonstrate dairy producers’ inventive methods for overcoming these obstacles. With milk supply staying static and replacement costs skyrocketing, the economic viability of dairy farming is jeopardized. The demand for smaller but bigger dairy farms and growing input prices are altering the business. The choices made today will likely affect the future of dairy farming in the United States, requiring farmers and industry stakeholders to reassess their strategy and plan for the difficulties.

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Mixed Year for UK Dairy Farms: Rising Milk Prices Still Fall Short of Production Costs, Reports Show

UK dairy farms faced mixed results in 2023. Are higher milk prices sufficient to cover production costs and provide fair income for farmers? Learn more.

Imagine laboring daily to provide an essential staple people need only to find your efforts insufficient to pay for your costs. Many UK dairy companies experience this reality. The changing milk prices over the last year have created additional challenges. Although prices improved significantly from a low of 36.49ppl in July 2023, the Kingshay Dairy Costings Focus Report reveals that they still do not meet realistic wages or manufacturing expenses. Good news is available, however. Milk solids per cow have increased by almost 11%; herd numbers have grown, and stocking rates have become more significant during the last ten years. Markets must provide premiums to cover these extra costs as climate change takes center stage. Now, efficiency and sustainability are more important than ever. The future of dairy farming relies on knowledge of the interactions between environmental factors and market pressures. 

Despite the challenging year, UK Dairy Farmers have shown remarkable resilience in the face of economic challenges, with Milk Prices and Production Costs coming under scrutiny. Last year, UK dairy producers displayed conflicting fortunes, particularly regarding milk pricing and production costs. According to the Kingshay Dairy Costings Focus Report, milk prices dropped drastically to an average of 36.49ppl in July 2023. Prices have increased since then but still fall short of manufacturing expenses. Many farmers need help to get fair compensation for their family effort.

The market peaked at 13.8ppl in March 2023 and narrowed to 11.6ppl by March 2024. The gap between the highest and lowest milk prices was erratic, drawing attention to the difficulties of satisfying customer needs and store expectations.

While the continuous difference between expenses and income threatens economic sustainability, the potential for market changes to offset these extra expenses and labor on farms, especially given climate change, offers hope.

The UK’s Dynamic Milk Market: Navigating Volatility and Embracing Sustainability 

The milk scene in the UK is constantly changing. In March 2023, the difference between the highest and lowest milk prices exceeded 13.8ppl; in March 2024, it narrowed to 11.6ppl. These price swings reveal consumer and retailer desires, causing market instability. 

Consumers and stores are now advocating sustainable practices in addition to reasonable costs. Promoting regenerative agricultural methods, which focus on restoring and enhancing the health of the soil, helps the market adjust as climate change takes the front stage. Meeting customer expectations and laws depend on processors like First Milk providing premiums for these environmentally beneficial approaches.

Dairy farmers face a complex combination of changing market dynamics, sustainability mandates, and varying milk prices. They must strike a compromise between environmental conscience and financial feasibility.

Over the past decade, UK Dairy Farms have embraced efficiency amid dynamic shifts in production trends, indicating positive developments in the industry.UK dairy farms’ production patterns have changed dramatically over the last ten years. Now averaging in the mid-8,000 liters per cow range, milk solids reach a record 646 kg/cow—an 11% increase from 10 years earlier. This meets contract criteria and shows a higher feed economy. Herd sizes have also increased from 185 cows in 2014 to 219. From 2.25 a decade ago, stocking rates have risen to 2.39 cows per hectare. These developments indicate a concentration on increasing output and economic resilience in challenging market circumstances.

Weather’s Whims: A Tale of Diverging Fortunes for UK Dairy Farmers 

Dairy farming has traditionally depended heavily on the weather, so this year proved difficult. Due to bad weather, three percent less milk was produced from pasture. Fascinatingly, Scotland broke the trend with a 16% rise, demonstrating how much regional practices and the environment affect outcomes.

Talk about the Kingshay Dairy Costings Focus Report-based patterns in milk prices over the last year. Describe how milk prices have increased but fall short of supporting fair rewards for family work and manufacturing expenses.

Rebound in Reproductive Health: Dairy Herds Return to Stability After Last Year’s Heatwave

After last year’s scorching summer, fertility patterns steadied. Days until the first service is 70—one day more than in 2021/22; the calving interval is back to 393 days. For the herds, these consistent readings point to a resumption of regular reproductive cycles. The not-in-calf rate over 200 days has dropped to 12%; the infertile culling rate is now down to 6.7%, in line with pre-summer rates. These patterns indicate that farmers are recovering control over the reproductive condition of their cattle.

Production Systems and Economic Efficiency: Diverse Approaches in the UK Dairy Sector 

Economic efficiency varies across the UK’s dairy production systems. All-year-round calving herds focused on housing achieve the highest margin per cow at £2,495. Meanwhile, autumn and split block calving herds with a grazing focus lead in margin per liter, reaching 29ppl. Economic implications are significant. Higher margins per cow mean better cash flow for reinvestment in the farm.

In comparison, higher margins per liter highlight the cost-effectiveness of pasture use. These efficiencies influence profitability, resilience, and the ability to meet consumer demands. Understanding them is critical to optimizing your operations in a dynamic market.

Organic Dairy Farming: Navigating Financial Pressures and Growth 

With the margin over-bought feed per cow declining 13.9% to £2,048 from £2,380 last year, organic dairy farms are under financial strain. Still, in the previous ten years, organic herd numbers have increased by 19% and now stand at 243 cows. Conversely, conventional herds have grown 18.4% to 219 cows from 185 in 2014. Although both farms are expanding, organic farmers suffer more profitability because of considerable feed expenses, stressing their difficulties in fulfilling organic requirements.

The Bottom Line

This year has been a swirl of events for UK dairy farmers driven by changing milk prices and growing production costs. Notwithstanding these difficulties, the industry has improved efficiency, with mixed results. Milk prices fell during the last 12 months, then slowly recovered, still not covering production expenses or paying adequate compensation for family work. This shift captures a consumer and retailer-driven market motivated by environmental needs.

From the production standpoint, there are advantages. Adverse weather affected forage milk, but generally, milk solids reach record levels because of better feed efficiency and careful herd management. Although lameness still exists from inclement weather, health statistics reveal fewer incidences of mastitis. After the heat wave, reproductive health has steadied, underscoring good management.

Efficiency is crucial; different economic performances across manufacturing systems result from this. Although both conventional and organic farms deal with financial constraints, the industry is changing with creative ideas aimed at sustainability and lessening environmental impact.

Market changes such as increased premiums for environmentally beneficial approaches and better price stability could better assist UK dairy producers in meeting environmental criteria and remaining profitable. Your help advocating these changes may significantly change this rugged yet hopeful terrain.

Key Takeaways:

  • Milk prices dropped sharply to an average of 36.49ppl in July 2023 but have since risen, albeit insufficiently to cover production costs and family labor for many farmers.
  • The price gap between the highest and lowest milk prices fluctuated significantly, peaking at 13.8ppl in March 2023 before narrowing to 11.6ppl in March 2024.
  • Retailers and consumers are increasingly demanding sustainable practices, pushing milk processors to offer premiums for regenerative farming.
  • Despite adverse weather conditions, average herd sizes have grown to 219 cows, and milk yields have seen a slight increase.
  • Health improvements include a reduction in mastitis cases, although lameness has increased, primarily due to poor weather affecting grazing.
  • Fertility metrics have stabilized following disruptions caused by the previous year’s heatwave, with calving intervals and days to first service returning to normal levels.
  • Diverse production systems showcase varying levels of efficiency, with housing-focused herds yielding higher margins per cow and grazing-focused herds delivering higher margins per liter.
  • Organic dairy farming has also been impacted, with margins over purchased feed dropping by 13.9% while herd sizes have increased by 19% over the past decade.

Summary:

UK dairy farmers have faced a challenging year due to changing milk prices and growing production costs. The Kingshay Dairy Costings Focus Report shows that milk prices dropped drastically in July 2023, but still fall short of manufacturing expenses. However, good news is available as milk solids per cow have increased by almost 11%, herd numbers have grown, and stocking rates have become more significant over the last ten years. Markets must provide premiums to cover these extra costs as climate change takes center stage. The dynamic milk market in the UK is constantly changing, with the difference between the highest and lowest milk prices exceeding 13.8ppl in March 2023 and narrowing to 11.6ppl by March 2024. Processors like First Milk must provide premiums for environmentally beneficial approaches to meet customer expectations and laws. UK dairy farms’ production patterns have changed dramatically over the last ten years, with milk solids reaching a record 646 kg/cow and herd sizes increasing from 185 cows in 2014 to 219.

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EU Dairy Decline: 2024 Milk Production Forecasted to Drop 0.3% Amid Lower Cow Numbers and Rising Costs

Discover why EU milk production is forecasted to drop 0.3% in 2024. How will declining cow numbers and rising costs impact the dairy industry? Read more to find out.

EU Flag waving against blue Sky

European Union milk production is set to face another challenging year, continuing its downward trend into 2024. Several factors contribute to this decline, with a predicted 0.3% drop in cow milk production. As the number of dairy cows falls below 20 million for the first time, it’s evident that consistent growth in cow productivity won’t fully offset the shrinking cow inventories. Rising production costs and lower farm-gate milk prices further exacerbate the situation, making milk production less profitable for EU farmers.  Join us as we delve further; these elements paint a comprehensive picture of the EU’s milk production landscape in 2024.

EU Dairy Herds Dwindling: First-Ever Drop Below 20 Million Cows Marks 2024’s Start

CountryDairy Cows in Milk (January 2024)Expected Change in Dairy Farmer Numbers (2024)Milk Production (Forecast for 2024)
Germany4.0 millionDecreaseStable
France3.5 millionDecreaseSlight Decrease
Poland2.8 millionDecreaseSlight Increase
Belgium0.6 millionDecreaseSlight Decrease
Netherlands1.6 millionMinimal ChangeStable
Ireland1.5 millionMinimal ChangeDecrease

At the start of 2024, the EU saw a significant change in its dairy industry: dairy cows dropped below 20 million, hitting 19.7 million. This marks a historic low and indicates a continuing downward trend in cow numbers, which is expected to persist throughout the year.

The Double-Edged Sword of Rising Cow Productivity Amid Shrinking Herds

Even though each cow produces more milk, more is needed to make up for the overall decline in cow numbers across the EU. Simply put, fewer cows mean less milk overall. This imbalance contributes directly to the forecasted 0.3% drop in milk production for 2024. Despite individual productivity gains, the milk output is declining due to the shrinking herds.

A Temporary Respite: Early 2024 Sees Milk Deliveries Surge Before Expected Decline

Time PeriodMilk Deliveries (MMT)Change (% Year-on-Year)Average Farm Gate Milk Price (EUR/100kg)

January-February 2023 24.0 – 40.86

January-February 2024 24.4 1.7% 35.76

Full Year 2023 145.24 -0.03% 39.50

Full Year 2024 (Forecast) 144.8 -0.3% 37.00

Early 2024 saw a 1.7% rise in cow’s milk deliveries compared to the same period in 2023. However, this boost is short-lived. Many farmers are expected to sell their cows or exit milk production later in the year, leading to a decline in deliveries.

The Multifaceted Challenges Shaping Europe’s Dairy Economy

The economic landscape for dairy farmers is becoming more challenging. A key issue is the steady drop in farm-gate milk prices since early 2023, significantly affecting profitability. 

Production CostsHigh production costs for energy, fertilizers, and labor persist, squeezing farmers’ margins despite some recent reductions. 

Geographical Impact: In Germany, France, Poland, and Belgium, smaller and less efficient farms are hardest hit. The pressure from lower milk prices and high input costs drives many to reduce herd sizes or stop milk production. 

Environmental RegulationsEnvironmental rules in the Netherlands and Ireland seek to cut nitrogen emissions, which are expected to negatively affect herd numbers and production costs in the long term. 

Overall, larger farms may better cope, but the trend toward consolidation continues due to falling profits and rising costs.

Environmental Regulations Cast Long Shadows Over EU Dairy Farming

Environmental regulations are threatening Europe’s dairy farming. New measures to curb nitrogen emissions are adding pressure on struggling farmers in the Netherlands and Ireland. 

For example, the Netherlands aims to cut nitrogen emissions by 50% by 2030, including reducing the number of dairy cows and relocating farms. Ireland’s targets similarly demand stricter manure management and sustainable farming practices, both costly and complex. 

These regulations, combined with high production costs and declining milk prices, make it challenging for smaller farms to stay in business. Many are choosing to exit the market rather than invest in expensive upgrades. 

As a result, smaller farms are shutting down, and larger farms need help to maintain their herd sizes. Although these regulations are essential for a greener future, they add another layer of complexity to the EU dairy industry’s challenges.

Generation Renewal Crisis Accelerates Market Consolidation in EU Dairy Sector

A growing trend in market consolidation and farm closures is evident within the EU dairy sector. One key issue here is the challenge of generation renewal. Younger generations are increasingly hesitant to continue milk production due to the heavy workload and tight profit margins. Elevated production costs and decreasing farm-gate milk prices also make it challenging for smaller, less efficient farms to stay in business. 

However, larger and more professional farms show notable resilience. They often have better infrastructure, access to advanced technology, and excellent financial stability, allowing them to maintain herd numbers despite broader declines. By leveraging economies of scale and more efficient practices, these farms can better absorb economic shocks and comply with environmental regulations. 

This disparity between small and large farms is accelerating market consolidation. As smaller farms exit, larger ones are absorbing their market share. While the total number of dairy farms is decreasing, those that remain are becoming more advanced and better equipped to tackle future challenges in the dairy economy.

Record-High Milk Prices in 2022 Spark Production Surge, Only to Shatter in 2023-2024

The surge in milk deliveries in 2022 and 2023 stemmed from record-high EU farm gate milk prices in 2022, peaking in December. These prices incentivized farmers to boost production despite rising costs, supporting the dairy industry at that time. 

However, these prices began to fall from May 2023 through March 2024, squeezing farmers financially. Although still above the 5-year average, the decline sharply contrasted with 2022’s profitability. With global milk production up and dairy demand fluctuating, EU farmers adjusted their production levels, paving the way for a predicted drop in milk deliveries in 2024.

The Ripple Effect: How Global Market Dynamics Shape EU Milk Prices 

Global market dynamics significantly impact EU milk prices. The world’s largest dairy exporters, including Australia, the United States, the UK, and New Zealand, have increased production, leading to an oversupply that pressures prices downward. This makes it challenging for EU producers to maintain their margins. 

Simultaneously, demand from major importers like China and some Middle Eastern countries is declining. Various factors, including trade tensions and shifting consumer preferences, contribute to this weaker demand. 

This supply-demand imbalance has reduced farm gate milk prices in the EU. While European prices remain higher than those of international competitors, more than this advantage is needed to counteract the rising production costs and reduce global demand. The EU dairy industry must navigate these challenges to stay competitive and sustainable.

Price Disparities in Global Dairy: EU’s Costly Position Against New Zealand and US Competitors

When you look at milk prices, you’ll notice that the EU’s are much higher than those of other major exporters like New Zealand and the US. In February 2024, the EU’s milk price hit EUR 46.42 per 100 kilograms. That’s 27% more than New Zealand’s and 18% more than the US. 

These higher prices mean EU dairy products cost more to produce and sell, making it challenging for EU producers to compete globally. Higher costs can squeeze farmers further, especially with high input costs and changing demand.

Weather Woes: Uneven Conditions Across Europe Impact Dairy Farming

In 2024, weather was vital in shaping feed and pasture conditions across Europe. Spring brought warm temperatures and balanced rainfall, leading to good green feed availability. However, the northwest, especially Ireland, faced challenges. Ireland’s dairy farming, which relies on cattle grazing for up to nine months, has struggled with wet soils and recent rains. These conditions hindered field access and grassland regrowth, severely impacting milk production.

The Bottom Line

In summary, EU milk deliveries are forecast to dip to 144.8 million metric tons (MMT) in 2024. Unfavorable weather and high input costs for energy and fertilizers are straining farmer margins. Despite brief boosts in productivity, these challenges will likely persist throughout the year.

Key Takeaways:

  • Decline in Cow Numbers: Cow numbers fell below 20 million for the first time in early 2024, indicating a continuing downward trend.
  • Productivity vs. Herd Size: Increased productivity per cow is not enough to counterbalance the overall decrease in herd sizes.
  • Initial Surge in Milk Deliveries: Early 2024 saw a 1.7% increase in milk deliveries, but this is expected to decline as more farmers exit the industry.
  • Decreasing Profitability: Farm-gate milk prices have been falling since early 2023, alongside high production costs, squeezing farmers’ profit margins.
  • Impact of Environmental Regulations: Government plans to cut nitrogen emissions in countries like the Netherlands and Ireland are affecting herd numbers.
  • Market Consolidation: The industry is seeing greater consolidation, with smaller, less efficient farms closing and bigger farms maintaining their herd sizes.
  • Weather Complications: Varying weather conditions across Europe in 2024 have impacted green feed availability and pasture conditions, particularly in Ireland.

Summary: The European Union’s milk production is experiencing a significant decline, with a predicted 0.3% drop in cow milk production. This decline is attributed to rising production costs and lower farm-gate milk prices. The number of dairy cows has fallen below 20 million for the first time, making milk production less profitable for EU farmers. In early 2024, there was a 1.7% rise in cow milk deliveries compared to the same period in 2023, but this was short-lived as many farmers were expected to sell their cows or exit milk production later in the year. The economic landscape for dairy farmers is becoming more challenging, with a steady drop in farm-gate milk prices since early 2023 significantly affecting profitability. High production costs for energy, fertilizers, and labor persist, squeezing farmers’ margins despite some recent reductions. The EU dairy sector is experiencing a growing trend of market consolidation and farm closures, with younger generations increasingly hesitant to continue milk production due to heavy workloads and tight profit margins.

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