The dairy industry experienced significant market divergence in 2024, with different product categories showing notably distinct trends. Raw milk production challenges set the foundation for a year of tight markets and elevated prices across multiple dairy commodities.

The European milk market started 2024 positively but quickly faced headwinds, with key producers like Ireland and the Netherlands seeing sharp decreases in milk intake. The spread of bluetongue disease became a major disruptor, leading to inevitable production drops across Western Europe, despite attempts by cooperatives to boost farm-gate milk prices to secure supply.

Milk fat markets reached unprecedented levels, with cream breaking the €10,000/MT barrier and butter surpassing €8,000/MT. This surge was driven by low stock levels and steady consumption patterns, leading to an interesting dynamic where cream sales were often preferred over butter production, resulting in a 3.25% drop in butter output.

The protein segment showed marked contrasts. While global milk powder markets remained subdued with relatively stable prices, whey proteins experienced a record-breaking year. Strong demand for specialized proteins, particularly from the nutrition sector, drove significant price increases. WPI and high-protein WPC saw exceptional demand, leading processors to prioritize these products over standard whey powder production.

Specialty proteins gained further ground, with milk protein concentrates (MPC) and caseinates seeing increased adoption as manufacturers shifted away from standard milk powders toward higher-value products. This trend reflected both strong market demand and processors’ focus on maximizing value from available milk supplies.

Outlook 2025: The sector faces continued challenges in milk production recovery, with bluetongue impacts likely to persist into early 2025. While seasonal price pressures are expected during the spring flush, structural supply constraints suggest sustained firm pricing across most dairy categories. The continued shift toward higher-value proteins appears set to reshape traditional production patterns, potentially creating new pressure points in commodity markets.

What’s inside this report

For a deeper dive into the trends that defined 2024 and the forces shaping 2025, our full report provides detailed insights into:

  • Raw Milk
  • Butterfat
  • Milk Powder
  • Whey
  • Specialty Proteins
  • Cheese

Each section offers comprehensive data and analysis, helping you navigate the complexities of the dairy market and make informed decisions for the year ahead.

Download the full report now to stay ahead of the curve and uncover actionable insights for 2025: https://vespertool.com/downloads/downloads-eoy-report-dairy-2024/