Milk market in Southern Europe

Earlier Report Observations

The Southern European milk market grew from 27.5 million tons in 2018 to 28.4 million tons in 2019, supported by increased consumption of dairy products and higher demand from the bakery industry, alongside initial public investments in dairy sector development. This expansion was interrupted in 2020 when market volume fell to 26.9 million tons, primarily due to COVID-19 pandemic disruptions that affected production and supply chains.

A robust recovery followed, with the market reaching 30.9 million tons in 2021. This surge was facilitated by regulatory changes in dairy product labeling and traceability, coupled with rising investment in organic and sustainable production. Growth continued into 2022, climbing to 32.0 million tons, driven by sustained increases in cow's milk deliveries to processors and further adjustments in industry norms and policies.

In 2023, market volume experienced a slight contraction to 31.6 million tons. While cow's milk production showed a mild recovery, this was offset by persistent challenges including inflation, high feed costs, and structural issues such as a lack of generational renewal among farmers. The period also saw greater import volumes due to elevated domestic prices and regional competitive pressures.

Production milk in Southern Europe

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Southern Europe's milk production volume saw a two-year improvement before declining. In 2019, production reached its peak at 26 410 K t. However, in 2020, it fell to 25 268 K t, marking a limited decrease of 4.3% compared to the previous year. Over the period from 2017 to 2020, overall production increased by 7.5%, with a compound annual growth rate of 2.4%. The largest annual increase occurred in 2018, at 8.3%.

Annual dynamics of production in Southern Europe in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Milk production in Southern Europe experienced a two-year uptick before declining. In 2019, output value peaked at 75 282 M $ US. In 2020, it dropped to 72 356 M $ US, reflecting a moderate fall of 3.9% from the year before. From 2017 to 2020, production value rose by 29.1%, equating to an annualized rate of 8.9%. The largest increase was recorded in 2018, at 25.1%.

Annual dynamics of production in Southern Europe in value, 2017-2020, M $ US

Exports milk from Southern Europe

Exports in kind, K t

In 2020, foreign milk supplies from Southern Europe totaled 629 K t, down by 4.3% year-over-year. Over the period from 2017 to 2020, exports increased by 14.7%, with an annualized rate of 4.7%. The minimum value was recorded in 2018 at 420 K t, while the maximum was in 2019 at 657 K t. The largest decline occurred in 2018, at 23.4%, and the largest increase was in 2019, at 56.4%.

Annual dynamics of product's exports from Southern Europe in kind, 2017-2020, K t

From 2017 to 2020, exports of milk from Southern Europe in kind were not concentrated on a few key destinations. France accounted for 6.3% of exports, Libya for 5.0%, and Angola for 2.9%, with these three countries jointly making up only 14.3% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Europe in kind, 2017-2020

Exports in value, M $ US

Southern Europe's volume of milk exports increased for the third consecutive year. In 2020, exports stood at 978 M $ US, reflecting a limited rise of 3.1% from the previous year. Over the period from 2017 to 2020, exports grew by 7%, with a compound annual growth rate of 2.3%.

Annual dynamics of product's exports from Southern Europe in value, 2017-2020, M $ US

Between 2017 and 2020, exports of milk from Southern Europe in value terms were not heavily concentrated. France represented 13.2% of exports, China 6.1%, and the Netherlands 4.3%, together capturing only 23.6% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Europe in value, 2017-2020

Imports milk to Southern Europe

Imports in kind, K t

After a two-year rise, foreign milk supplies to Southern Europe declined. In 2019, imports peaked at 2 603 K t. In 2020, they fell to approximately 2 247 K t, equivalent to a reduction of 13.7% year-over-year. From 2017 to 2020, imports decreased by 6.8%, with an annualized rate of 2.3%. The largest increase was recorded in 2019, at 4.7%.

Annual dynamics of product's imports to Southern Europe in kind, 2017-2020, K t

From 2017 to 2020, Germany, France, and Austria were the main markets for milk imports in kind to Southern Europe. Germany accounted for 26.6% of imports, France for 18.8%, and Austria for 11.8%, together representing 57.2% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Europe in kind, 2017-2020

Imports in value, M $ US

After a two-year increase, milk deliveries to Southern Europe declined. In 2019, import value reached its maximum at 2 127 M $ US. In 2020, it dropped to {value_last_year} M $ US, reflecting a moderate decrease of 5.6% compared to the previous year. Between 2017 and 2020, imports decreased by 2.4%, equating to an annualized rate of 0.8%. The largest increase was recorded in 2019, at 2.1%.

Annual dynamics of product's imports to Southern Europe in value, 2017-2020, M $ US

Over the period from 2017 to 2020, Germany, France, and the Netherlands remained the leading destinations in the country structure of milk imports in value terms to Southern Europe. Germany accounted for 27.7% of imports, France for 18.0%, and the Netherlands for 7.6%, with a combined share of 53.4% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Europe in value, 2017-2020