{"id":4623,"date":"2025-04-25T09:55:53","date_gmt":"2025-04-25T07:55:53","guid":{"rendered":"https:\/\/www.fermesleader.com\/what-does-the-future-hold-for-the-dairy-sector-challenges-innovations-and-economic-outlook-for-2025\/"},"modified":"2026-07-09T15:01:50","modified_gmt":"2026-07-09T13:01:50","slug":"what-does-the-future-hold-for-the-dairy-sector-challenges-innovations-and-economic-outlook-for-2025","status":"publish","type":"post","link":"https:\/\/www.fermesleader.com\/en\/what-does-the-future-hold-for-the-dairy-sector-challenges-innovations-and-economic-outlook-for-2025\/","title":{"rendered":"What does the future hold for the dairy sector? Challenges, innovations and economic outlook for 2025"},"content":{"rendered":"\t\t
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On April 3, the Grand Angle Lait 2025 conference<\/strong>, organised by the Institut de l\u2019\u00c9levage in partnership with CNIEL and CNE, brought together the main players in the dairy sector in Paris and <\/span>at<\/span> several regional sites. This event provided an opportunity to address the challenges<\/strong><\/span> technical<\/span>,<\/span> <\/strong>economic and environmental challenges facing the dairy sector<\/strong>, while highlighting innovative solutions<\/a> to meet today\u2019s challenges.<\/span> <\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Dairy economics: a dynamic global market driven by demand for butter <\/h2>\t\t\t\t<\/div>\n\t\t
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The year 2024 was marked by strong momentum in the global butter market<\/strong>, driven in particular by sustained demand from the United States. This pressure led to a significant rise in prices<\/strong>, which had positive knock-on effects on producers\u2019 margins. In France, milk collection increased by around 1%<\/strong> by the end of October 2024, supported by excellent forage quality harvested in 2023, enabling a 4.9% increase in apparent yield<\/strong> compared with 2023, reaching 7,700 kg per dairy cow per year <\/strong><\/span>(Source: GEB \u2013 Idele based on Eurostat and FranceAgriMer<\/span><\/i>). <\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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However, this increase slowed from September onwards in the Northern and Eastern regions due to bluetongue (BT). In addition, the organic sector remains in difficulty, with a continued decline in the dairy herd<\/strong>. In terms of processing, France produced less milk powder and butter<\/strong>, but increased its production of cheese, cream and ultra-fresh products<\/strong>. Ex-factory dairy product prices, as well as consumer retail prices, rose slightly, particularly for butter. <\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Technical and economic performance: rising incomes but widening disparities <\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Between 2014 and 2022, French dairy farms saw a general upward trend in income<\/strong>, driven by several key factors: the milk price, productivity gains, favourable conditions for arable crops, and the management of climate hazards. The surge in production costs in 2022 was largely offset by high milk and meat prices. <\/span> <\/span><\/p>

However, this period also saw a widening of income gaps between different production systems<\/strong>, notably between lowland and mountain areas, and between organic and conventional sectors. Operating capital (land, buildings, herd, equipment, etc.) increased by 21% in seven years <\/span>(Source: GEB\u2010Institut de l\u2019Elevage based on Inosys Livestock Networks)<\/span><\/i>, but this growth was accompanied by a decline in farm labour<\/strong>, raising questions about the transferability and attractiveness of the profession. Automation has risen significantly, doubling the use of salaried labour and increasing productivity per unit of human labour and per cow. In the mountains, outside the Eastern PDO areas, farms are penalised by higher production costs and insufficient milk valorisation. In 2024, production costs stabilised despite rising rents, the minimum wage and electricity prices, thanks to lower fertiliser, feed and fuel prices. The French milk price remains lower than that of North-West Europe, where it exceeds \u20ac550\/tonne, compared with \u20ac439\/tonne in France (<\/span> Source: European Commission DG AGRI FADN EU<\/span><\/i>). Productivity reaches remarkable levels in Denmark, highlighting the potential room for improvement.<\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Workforce renewal and work organisation<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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As we mentioned in the article on generational renewal<\/strong><\/a><\/span>, the dairy sector is not spared and is also undergoing a profound transformation linked to generational renewal and changes in how work is organised. The demographic wave of farmers retiring, particularly from age 60, is accelerating in a more favourable economic context, which is encouraging automation and increased use of salaried labour. Between 2018 and 2024, 38% of milk producers left the sector<\/strong>, with a projection of 50% by 2027<\/strong> (<\/span>Data accessible via CASD, Ref. ANR-10-EQPX-17<\/span><\/i>). This trend is accompanied by farm consolidation, with strong growth in farms with more than 150 dairy cows and increased intensification per animal. Automation<\/strong> makes it possible to increase milk volumes produced per unit of labour, offsetting the decline in farm labour.<\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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New farm set-ups remained stable until 2022, with a historic peak in women setting up before age 40, but fell in 2023\u20132024, particularly in Brittany. Several hypotheses explain this phenomenon: postponement of projects pending new regional policies, or the gradual substitution of farmers by robots and employees, marking a major transformation in work organisation. Women face specific barriers to setting up, economic (access to credit, landlords\u2019 confidence) and sociocultural (traditional transfer to the son). Their set-up is often later and less supported by aid. Women\u2019s collectives stand out for innovative work organisation, with complementary tasks and strong autonomy. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Environmental challenges: towards a more sustainable dairy sector<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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In the face of climate change challenges<\/strong>, the European dairy sector has embarked on several ambitious projects aimed at reducing its carbon footprint<\/strong>. Programmes such as Dairy-4-Future<\/strong><\/a><\/span> (led by a consortium of 11 European partners including the Institut de l\u2019\u00c9levage), ClieNFarms<\/strong><\/a><\/span> (coordinated by INRAE and bringing together 33 European partners), PATHWAYS<\/a> <\/strong><\/span>(coordinated by the Swedish University of Agricultural Sciences) and Carbon Farming<\/a><\/strong><\/span> (initiated by the European Commission via various consortia under the LIFE programme) are developing solutions to improve the efficiency and sustainability of livestock systems.<\/span><\/p>

Among the innovations<\/strong>, feed additives play a promising role in reducing enteric methane emissions<\/strong>: inhibitors such as 3-NOP and calcium nitrates can reduce emissions by 15 to 40% without altering zootechnical performance. Other substances such as Asparagopsis or certain plant extracts offer more modest reductions, with effects still to be confirmed. Major dairy groups are setting ambitious targets for reducing greenhouse gas emissions<\/strong>, aiming for up to a 50% reduction for Nestl\u00e9 in France by 2050, with support, investment and labelling schemes. <\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Adapting to climate change: innovations in dairy farming <\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Adapting to climate change is now a central focus in the evolution of dairy farms. Faced with more frequent heatwaves, droughts and climate hazards, farmers are investing in better-designed buildings to ensure animal comfort and health: optimised natural ventilation, light and humidity management, easier access to water and quality feed have become priorities, while the BRIC tool (Buildings: Rethinking Investments and Costs) helps to effectively plan the investments needed for construction or renovation. <\/span> <\/span><\/p>

In parallel, genetic selection<\/strong> is emerging as a sustainable lever: European and French research programmes, such as CAICalor and Rumigen, aim to identify and disseminate animals that are more resistant to heat stress, able to maintain good performance and satisfactory fertility despite changing climatic conditions. <\/span> <\/span><\/p>

To support these changes, farmers and their advisers also have access to innovative digital and methodological tools<\/strong>, such as ACLIMEL or ClimAl\u00e9as Diag, which facilitate vulnerability analysis, forage resource management and the planning of tailored adaptation strategies. All of these approaches\u2014architectural, genetic or organisational\u2014help strengthen the resilience and sustainability of dairy systems, while keeping economic performance and animal welfare at the heart of priorities. <\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Artificial intelligence: a major driver of innovation<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Artificial intelligence (AI) is profoundly transforming the dairy sector thanks to its predictive and generative applications. Predictive tools<\/strong> based on sensors or monitoring systems enable early detection of issues such as mastitis or lameness with accuracy of up to 85%. In animal reproduction, AI can analyse data to detect oestrus or predict calving with increasing reliability. <\/span> <\/span><\/p>

Generative AI<\/strong>, meanwhile, offers revolutionary potential in agricultural advisory services: rapid synthesis of complex information, simulation of farm-specific scenarios, etc. However, these technologies also raise ethical (data reliability) and environmental (carbon footprint) challenges. AI does not replace human expertise; it amplifies it, giving advisers enhanced capabilities. The challenge is to frame its use to preserve the on-the-ground relationship and the relevance of decisions. <\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Towards a more innovative and sustainable dairy sector thanks to synergies with AgriTech<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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The Grand Angle Lait 2025<\/strong> conference highlighted a sector facing major challenges but rich in opportunities for innovation. Technological transformations (automation, AI) and environmental initiatives provide a favourable framework for developing solutions tailored to farmers\u2019 current needs. For Fermes Leader, these lessons provide a solid basis for considering new collaborations with dairy-sector stakeholders looking to test or deploy innovative technologies in the field. We remain open to any initiative or project aimed at strengthening these synergies between <\/span>innovation, <\/span>Ag<\/span>ri<\/span>Tech<\/span> and livestock farming!<\/span><\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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On April 3, the Grand Angle Lait 2025 conference, organised by the Institut de l\u2019\u00c9levage in partnership with CNIEL and CNE, brought together the main players in the dairy sector in Paris and at several regional sites. This event provided an opportunity to address the challenges technical, economic and environmental challenges facing the dairy sector, […]<\/p>\n","protected":false},"author":2,"featured_media":4626,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"partenaire":[],"categorie-de-projet":[],"class_list":["post-4623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/posts\/4623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/comments?post=4623"}],"version-history":[{"count":1,"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/posts\/4623\/revisions"}],"predecessor-version":[{"id":4627,"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/posts\/4623\/revisions\/4627"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/media\/4626"}],"wp:attachment":[{"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/media?parent=4623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/categories?post=4623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/tags?post=4623"},{"taxonomy":"partenaire","embeddable":true,"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/partenaire?post=4623"},{"taxonomy":"categorie-de-projet","embeddable":true,"href":"https:\/\/www.fermesleader.com\/en\/wp-json\/wp\/v2\/categorie-de-projet?post=4623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}