The European milk market observatory celebrates its 10th anniversary

On 16 April 2014, ten years ago to the day, the European milk market observatory was launched. It was the first ever observatory for agricultural markets to be set up by the European Commission. Since then, this successful format has been replicated for the sectors of meat, sugar, crops, fruit and vegetables and wine. It has also served as a blueprint for the observatory on fertilisers launched in 2023 and for the latest one on the food chain, whose first meeting is expected in July.

Established one year before the milk quota regime ended, 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 has proved helpful to enable stakeholders of the milk supply chain and the Commission to take well-informed decisions. The observatory was especially valuable during the time of low prices in the milk sector in 2016-2017 which led to a successful use of the public intervention tool by the European Commission to maintain market balance and support the recovery of the dairy sector.

In effect, the milk market observatory (MMO) regularly provides an online overview of information on production, prices, and trade of the main dairy commodities – raw milk, butter, milk powders, and several commodity cheeses. Accompanying monthly analytical factsheets 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 the organisations representing all steps in 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 milk market observatory (MMO) Economic Board meets four times a year. It will hold its 50th meeting in July. The agendas and minutes of all meetings are available online. 

The dairy sector

Milk and dairy products are one of the EU’s flagship agricultural sectors. With 280 registered dairy geographical indications (GI), it is the second sector producing the highest number of GI products, after wine. Dairy products are also a key driver of EU exports. Representing 9% of all EU agri-food exports for a value of close to €20 billion, it is the second most exported product category after cereal preparations and milling products and before 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 about 530,000 dairy farms across the EU, most of them family farms. Grazing cows are a well-known feature of EU rural landscapes. It is a fact that 86% of the grass and crop residues consumed by livestock (cows, goats and sheep) is not fit for human consumption while the products made out of the milk of these animals fulfill a large share of our needed protein intake.

The Common Agricultural Policy (CAP) has been supporting the sector in its shift towards more sustainable agricultural practices, alongside all other agricultural sectors since CAP aid has been largely decoupled from production since 2003. Eco-schemes in the current CAP provide support for targeted and tailored interventions to minimise the footprint of livestock and maximise its positive effects. For example, extensive grassland livestock systems have demonstrated their positive contribution by converting grass into food, producing wool and biomass, maintaining biodiversity, storing carbon, controlling soil erosion, and preserving landscapes. Overall, eco-schemes will cover 68% of the total utilised agricultural area thus representing a promising tool to increase the environmental sustainability of the sector. As a reminder, close to €98 billion from the CAP (representing 32% of the total spending) are devoted to delivering benefits for the climate, water, soil, air, biodiversity and animal welfare.

For more information

Milk market observatory

EU agri-food data portal on the dairy market

Report from the Commission to the European Parliament and the Council on Union Market observatories