EU butter production increased by approximately 1.5% in 2023 as EU prices became more competitive (also compared to other fats), and processing demand remained strong (e.g., in bakery), according to an analysis by the European Commission.

EU exports increased to all major export destinations (+15%), and the export value reached a record EUR 1.61 billion.

Maintaining a similar pace is unlikely in 2024, but the growth of EU butter exports could remain positive (+1.5%), assuming competitive EU export prices. At the same time, domestic consumption in the EU is likely to remain strong but stable (+0.1%).

Fresh dairy production exceeded expectations in 2023, especially for cream (+1.5%) but also for drinking milk (+0.3%).

EU exports continued to decline (-5.5%) due to decreased demand from China, shifting additional volumes to the EU domestic market and thus also supporting the increase in EU internal use (+0.8%). In 2024, EU consumption will likely return to the downward trend of the past few years, and EU exports could further decline due to persistently weak global demand.

To respond to these negative demand factors, EU production of fresh dairy products could decrease to a level comparable to 2022 (-0.8%).

Among fresh dairy products, the production of cream and yogurt could continue to grow, supported by strong domestic demand, while the production of drinking milk is likely to decline. (Photo: Dreamstime)