World milk production is to grow by 0.8% in 2025

According to Rabobank’s report, the second half of 2024 was crucial for increasing milk supply in seven major exporting regions.

This increase in production has led to a forecast of 0.8% growth in global milk production in 2025. For the first time since 2020, these regions are expected to be successful in developing dairy production.

Rabobank remains cautiously optimistic, noting that potential disruptions due to disease outbreaks in some parts of Europe and the United States seem to have been averted. Notably, producer prices for milk are showing an upward trend, providing economic respite for dairy farmers as global concentrate feed markets show favorable prices and availability.

Rabobank’s analysis highlights the different dynamics in key markets, such as the United States, where milk production has recovered thanks to improved profit margins. Although bird flu continues to spread, its impact on dairy production and trade is limited. However, there are geopolitical risks, including increased US protectionism and potential trade tensions, which could hamper dairy exports and labor availability.

In addition, the report notes uneven global demand for dairy products and that consumer spending is under pressure in many economies. While retail sales are receiving some support from increased domestic consumption, emerging markets are showing signs of declining purchases.

According to the 2025 global dairy industry outlook, uncertainty over trade policy under the Trump administration and its impact on market dynamics remain a major concern.