“An essential condition for the sustainable development of the dairy sector is the ability of farms to remain resilient in the face of rapid change. To withstand today’s environmental, economic, and social challenges, farmers need to be robust, adaptive, and innovative. This view was shared by participants at the 26th International Dairy Conference,” noted Olga Kozak, Doctor of Economic Sciences and Chief Researcher at the Department of Agricultural Market and International Integration of the National Scientific Centre “Institute of Agrarian Economics,” reporting on the event where she represented Ukraine’s dairy sector.

This year’s conference, titled “Future Dairy Farming Systems: Resilience as a Path to Sustainability,” took place from May 20 to 23, 2025, at the Dairy Campus of Wageningen University, located in Leeuwarden, the Netherlands.

The conference aimed to discuss the balance between resilience and sustainability in future dairy farming systems and the role of farmers in addressing challenges related to climate change, economic pressures, and societal expectations.

According to participants, the main global stress factors affecting the dairy sector remain the ongoing war in Ukraine and other regions, economic and political volatility, price fluctuations, climate anomalies, animal diseases, and the tension between skilled labour and automation in production processes.

In addition, each country faces unique challenges that farmers must overcome.

In Ukraine, farmers are coping with the consequences of the russian federation’s armed aggression while simultaneously implementing European requirements for quality standards, food safety, veterinary services, environmental protection, and other aspects in the context of future accession to the EU single market.

For example, in the Netherlands, resilience in dairy farming means adapting to a growing number of environmental regulations – from biodiversity requirements and protein ratios to new rules on organic fertiliser use and animal welfare.

In the U.S., dairy farmers work towards ambitious sustainability goals, including GHG neutrality, optimised water use, and improved nutrient management.

In Brazil, farmers are navigating market uncertainties.

These global and local challenges reflect broader worldwide trends in dairy production and market dynamics, where global milk production growth slowed to 2.0% between 2020 and 2024, compared to 2.7% between 2010 and 2020.

Traditional exporters – Europe and Oceania – are experiencing stagnation and regulatory hurdles, while Asia and Africa show potential for growth.

Demand for dairy products continues to grow steadily despite limited supply and current risks, driven by population growth and increasing per capita consumption of milk and dairy products worldwide. High demand has fueled higher farm-gate milk prices. In 2024, the global farm-gate milk price averaged 44.2 USD/100kg, representing an 11% increase over the previous year.

Olga Kozak emphasised that to meet the rising global demand by 2035, the sector must embrace innovation, strategic planning, and tailored regional approaches.

Conference participants also discussed labour management issues on dairy farms linked to labour shortages or low skill levels. Experts agreed that today’s dairy farm manager should increasingly be a “people manager” rather than just a “cow manager.”

Understanding what motivates employees to stay – or causes them to leave – is now crucial for building a stable, skilled workforce in the dairy sector. However, the number of farmers favouring automation to replace labour with robots is steadily increasing.

Participants visited one such modern automated dairy farm in the Netherlands. This state-of-the-art farm, with a herd of 300 dairy cows, is managed by just three family members using innovative technologies.

After three days of intensive discussions, all participants agreed that the future of the global dairy sector would depend on its ability to adapt through innovation, support its farmers, and lead with resilient, people-focused strategies to ensure sustainable growth.

The conference brought together more than 60 dairy researchers from 40 countries.

The event was organized by the International Farm Comparison Network (IFCN), a global research network that provides comparative data and insights to stakeholders in the dairy sector.