In the European Union and the United Kingdom Rabobank expects a decline in milk supply for the first half of 2024, namely 0.5 percent in the first quarter and 0.4 percent in the second quarter. Looking ahead to the first months of 2024, the bank expects an increase in milk prices based on recent improvements in dairy prices, a relatively tight market balance and lower inventory levels. For de longer future Rabobank expects that in Europe the growth of milk supply and thus also the growth of dairy exports will slow down because of European nature, environment and climate policy.