After reaching historically high levels in 2022, raw milk prices in the EU dropped sharply in the first half of 2023.

The decline in prices slowed during the summer, and prices finally began to rise in Q4 2023. By September, average raw milk prices in the EU had fallen to 25% below the peak of December 2022 (still 11% above the 5-year average).

At the beginning of 2024, raw milk prices in the EU increased and stabilized at a level (over 46 cents/kg) still significantly above historical references (+15% compared to the 5-year average).

Meanwhile, energy and fertilizer prices decreased in 2023 and stabilized at levels well above the average prices of the last decade.

Except for the negative consequences of heavy rains in some EU countries (e.g., pasture conditions became exceptionally difficult in Ireland at the beginning of 2024), weather conditions for fodder production and grazing seem favorable at this time.

Overall, the stabilization of input and output prices could reduce margins for dairy farmers in 2024, according to the latest forecast published by DGAgri. (Photo: Freepik)