On April 16, 2014, ten years ago, the European Milk Market Observatory was launched. It was the first observatory for agricultural markets established by the European Commission.

Since then, this successful format has been replicated for the meat, sugar, crops, fruits and vegetables, and wine sectors.

Additionally, it served as a blueprint for the fertilizer observatory launched in 2023 and for the most recent one in the food chain, whose first meeting is expected in July.

Established a year before the end of the milk quota regime, the milk market observatory aimed to increase transparency for the dairy sector by providing the most accurate market data and short-term analysis in a timely manner.

It proved useful in enabling stakeholders in the milk supply chain and the European Commission to make informed decisions.

The observatory was particularly valuable during the period of low milk prices in the 2016-2017 period, which led to the successful use of the public intervention tool by the European Commission to maintain market balance and support the recovery of the dairy sector.

In fact, the Milk Market Observatory (MMO) regularly provides an online overview of information on production, prices, and trade in key dairy products - raw milk, butter, milk powder, and some basic cheeses.

Accompanying monthly analytical sheets are prepared and published by the European Commission. Extensive market data on milk and dairy products are also available on the agri-food data portal.

In addition to the wealth of market data available, the observatory includes an economic board chaired by the Commission and composed of representatives of organizations representing all stages of the milk supply chain:

CEJA (young farmers), COPA-COGECA (producers and cooperatives), ECVC (Via Campesina), EMB (European Milk Board), EDA (dairy industry), Eucolait (dairy trade), and Eurocommerce (retail). The Economic Board of the Milk Market Observatory (MMO) meets four times a year. It will hold its 50th meeting in July. Agendas and minutes of all meetings are available online.

Dairy sector

Milk and dairy products are one of the emblematic agricultural sectors of the EU. With 280 registered dairy geographical indications (GIs), it is the second sector that produces the highest number of products with geographical indication, after wine.

Dairy products are also a key factor in EU exports. Representing 9% of total agri-food exports of the EU, for a value of almost 20 billion EUR, it is the second most exported category of products after cereals and milling products and ahead of wine.

The EU is renowned for its high-quality products and for having the strictest production and sustainability standards in the world.

Dairy farming is an important activity for rural areas. There are approximately 530,000 dairy farms in the EU, mostly family farms. Grazing cows are a well-known feature of rural landscapes in the EU.

It is a fact that 86% of grass and crop residues consumed by animals (cows, goats, and sheep) are not suitable for human consumption, while products obtained from the milk of these animals meet a large part of our protein needs.

The Common Agricultural Policy (CAP) has supported the sector in transitioning to more sustainable agricultural practices, along with all other agricultural sectors, as CAP aid has largely been decoupled from production since 2003.

The eco-schemes of the current CAP provide support for targeted and tailored interventions to minimize the footprint of animals and maximize its positive effects. For example, extensive grassland systems have demonstrated their positive contribution by transforming grass into food, wool production, biomass, maintaining biodiversity, carbon storage, soil erosion control, and landscape conservation.

Overall, eco-schemes will cover 68% of the total agricultural land area used, thus representing a promising instrument for increasing the ecological sustainability of the sector.

To remind us, almost 98 billion EUR of CAP (representing 32% of total expenditure) is allocated to provide benefits for climate, water, soil, air, biodiversity, and animal welfare. (Photo: Dreamstime)