Limited room for growth for EU dairy companies

Social and environmental pressures will limit herd-size growth in Europe

A farmer get his milk collected in Scarriff Co Clare by a Kerry Co op. Picture James Treacy

An “even more challenged” decade is predicted for dairy co-operatives in the EU and New Zealand, due to their matured domestic markets and, most significantly, to limited growth in milk volumes, in response to sustainability constraints.

EU milk production is forecast by Rabobank analysts to grow by just 0.6% annually during the decade, compared to 1.2% from 2016 to 2020.