Global Dairy Sector Eyes Growth Amid Challenges

The global dairy industry enters 2025 with cautious optimism, balancing growth prospects against persistent challenges. Key factors influencing this outlook include:

• Production Trends: Major dairy-producing regions anticipate modest increases in milk production. For instance, British milk production is forecasted to grow by over 1% in 2025, rebounding from earlier setbacks due to unfavorable weather and lower prices.

• Market Dynamics: While demand remains steady in many regions, certain markets face oversupply issues. China, for example, continues to grapple with a milk surplus, expected to persist through the first half of 2025, impacting smaller farmers and influencing global trade flows.

• Investment and Expansion: The industry is witnessing significant investments aimed at modernization and expansion. In the U.S., new dairy processing facilities are coming online, particularly in the Southeast, signaling growth and increased processing capacity.

• Sustainability Initiatives: Environmental concerns are prompting collaborative efforts to reduce the dairy sector's carbon footprint. In the UK, major retailers and dairy cooperatives are trialing methane-reducing feed additives, achieving an average 27% reduction in emissions.

Despite these positive developments, the industry remains vigilant about potential disruptions, including trade uncertainties, policy changes, and environmental challenges.

Industry Insight:

Dairy stakeholders should leverage current growth opportunities by investing in sustainable practices and infrastructure while remaining adaptable to market fluctuations and regulatory shifts.

Source : DAirynews7x7 June 6th 2025 Dairy herd