Dairy sector: risk of farm closures also arose due to rapid price decline

By: Trademagazin Date: 2026. 01. 09. 11:36

🎧 Hallgasd a cikket: Nyelv: Sebesség: 1.05×

Agrarszektor writes about a worsening milk market crisis due to stockpiling and international market shocks: as a result of the dramatic price drop, several experts believe that there will be no profit in the sector in 2026, and for smaller farms, the current environment may even force the abandonment of production and farm closures.

According to the paper, the year 2026 started with a serious market crisis in the dairy sector, affecting both producers and processors. One of the main reasons for this situation is oversupply due to the increase in global production volumes, while international market conditions were also affected by China’s increase in tariffs on European dairy products in response to tariffs on electric vehicles.

The article also mentions that $11 billion worth of improvements in the United States have improved the efficiency of dairy processing plants, which could cause a competitive disadvantage in the global market. In the uncertain environment, the renegotiation of contracts at home is hampered, and where agreements are still reached, producers are forced to accept offers with less favorable terms than last year.