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Bluetongue to dent European milk supply

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Bluetongue Outbreak Set to Disrupt EU Milk Production: A Brewing Storm in Europe’s Dairy Heartland

The European dairy industry is facing a fresh and formidable challenge as the bluetongue virus—particularly the BTV-3 strain—continues its aggressive march across the continent. What began as isolated cases in late 2023 has now evolved into a widespread outbreak spanning 14 EU member states, threatening to dent milk production in some of Europe’s most critical dairy zones and potentially tightening global dairy supply chains in the months ahead.

A Hidden Threat to Milk Yields

Though bluetongue poses no direct risk to humans or milk safety, its toll on animal health is severe and economically consequential. The virus, transmitted by biting midges, causes fever, lethargy, lameness, and in extreme cases, death. In dairy cows, the physiological stress of infection results in noticeably lower milk yields and severely compromised fertility. In fact, experts report that in infected herds, conception rates can fall below 50%, with a third of cows potentially becoming barren—an alarming figure for any commercial dairy operation.

According to GIRA CEO Christophe Lafougere, Germany’s milk production alone is projected to decline by 1.7% in 2025, equating to over half a billion liters of lost output. France and the Netherlands are expected to follow suit with 1.2% drops each, further tightening a market already stretched by climatic stress, regulatory shifts, and high input costs.

Hardest-Hit Regions: Northern Europe on Alert

The Netherlands has reported over 6,000 confirmed cases, with containment efforts struggling to keep pace with the virus’s spread. German authorities, too, are scrambling to mitigate the fallout, particularly in regions with high-density, high-yielding dairy herds. In both countries, the outbreak exacerbates an already precarious economic environment for farmers dealing with sustainability compliance, aging infrastructure, and volatile global dairy markets.

Meanwhile, Belgium is also under strain, facing similar herd health challenges amid efforts to prevent regional export disruptions. The cumulative effect across these northern nations—long considered the powerhouse of EU dairy exports—may reshape intra-European supply dynamics.

Vaccination: A Race Against Time

Vaccination efforts are underway but face serious limitations. The BTV-3 strain has been especially difficult to contain due to limited vaccine stocks, distribution bottlenecks, and inconsistent uptake among farmers. Some producers, wary of costs and logistical delays, are adopting a wait-and-see approach, increasing vulnerability across the board. The European Commission has urged member states to coordinate their responses more effectively, but discrepancies in veterinary infrastructure and national budgets have slowed unified action.

A Patchwork Impact: Winners and Losers in the Bloc

Interestingly, the bluetongue outbreak’s impact is uneven across the EU. Southern European countries like Spain and Italy have so far escaped the worst, thanks partly to their drier climates, which are less hospitable to midges. Ireland, buffered by its island geography and stringent livestock import rules, remains untouched for now. These regional differences could provide a short-term competitive edge to southern and western European producers—though questions remain about how long their relative immunity will last.

Poland and Ireland, in contrast to the broader EU trend, are expected to record milk production increases of nearly 300 million and 210 million liters respectively. While helpful at the macro level, these gains are unlikely to fully offset the production dips in Germany, France, and the Netherlands.

Global Demand Meets European Fragility

Adding pressure is the shifting global dairy demand landscape. Southeast Asia is set to overtake China as the world’s largest dairy import region, driven by a lack of domestic supply and a rising middle class. Simultaneously, European consumption is evolving. Full-fat milk is back in favor, yogurt demand is climbing, and butter and cream supplies may come under stress as processors prioritize drinking milk.

In a market where margins are razor-thin and global trade dynamics are volatile, even a 1% supply contraction reverberates quickly—affecting everything from farmgate prices to supermarket shelves.

A New Normal for Dairy Disease?

The bluetongue outbreak could well be a sign of things to come. As climate change expands the habitat of disease-carrying insects, the dairy sector may face a future where such viral disruptions become more frequent and more widespread. For Europe’s dairy farmers, this is more than a seasonal challenge—it is a test of systemic resilience in a world where biological, environmental, and geopolitical risks are increasingly interlinked.

In the short term, consumers might notice only subtle changes—a modest price bump on cheese, or less butter on the shelf. But for farmers and processors, the stakes are considerably higher. The road to recovery will depend not just on medical countermeasures, but on coordinated policy responses, improved biosecurity, and a renewed focus on adaptive herd management.

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