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EU Dairy Sector Sees Steady Growth In Raw Milk Production In 2024

EU farms produced an estimated 161.8 million tonnes of raw milk in 2024, a modest increase of 0.9 million tonnes compared to 2023. This figure builds on a decade of steady growth, with production rising by 12.1 million tonnes since 2014, when output was 149.7 million tonnes. According to Eurostat, the trend underlines the resilience and expanding capacity of the EU dairy industry.

Dairy Consumption And Product Diversification

Of the total raw milk output, approximately 150.8 million tonnes were directed to dairies, underpinning the production of a diverse range of fresh and processed dairy products. Notably, much of the milk is allocated to cheese and butter manufacturing. Specifically, 59.9 million tonnes of whole milk, assisted by an additional 17.0 million tonnes of skimmed milk, were transformed into 10.8 million tonnes of cheese. Similarly, 44.2 million tonnes of whole milk facilitated the production of 2.3 million tonnes of butter and other yellow products, generating 41.5 million tonnes of skimmed milk as a by-product.

Leading National Contributors

Germany emerged as the EU’s largest producer of drinking milk, accountable for 18.8% of overall production and dominating the production of acidified milk products, butter, and cheese with respective shares of 27.1%, 20.6%, and 22.5%. Spain and France follow closely, with Spain contributing 15.2% and France 12.7% to the production of drinking milk. France also holds significant positions in the butter (17.2%) and cheese (17.8%) segments.

Niche Production And Strategic Specialization: The Case Of Cyprus

Cyprus remains a minor player within the EU dairy sector. Its modest agricultural base, constrained pastureland, and limited herd sizes yield relatively low production volumes—recording 56,310 tonnes for drinking milk, 12,440 tonnes for acidified milk products such as yoghurt, 0.050 tonnes for butter, and 42,550 tonnes for cheese. However, the island’s strategic focus on high-value cheese production, particularly halloumi, a Protected Designation of Origin (PDO) product, underscores its competitive niche in the market. With a high proportion of available milk being allocated to cheese, Cyprus exemplifies how specialization can drive export success, even amid constrained production capacities.

Cyprus Introduces 8% Crypto Tax As European Rules Diverge

Fragmented Crypto Tax Rules Across Europe

Although the European Union has introduced a common regulatory framework for digital assets through the Markets in Crypto-Assets Regulation (MiCA), taxation remains under the jurisdiction of individual member states. As a result, crypto investors face a wide range of tax regimes across Europe.

Cyprus Introduces Dedicated Crypto Tax Framework

Beginning January 1, 2026, Cyprus will implement a dedicated taxation regime for digital assets. The new framework imposes an 8% flat tax on net gains from cryptocurrencies such as Bitcoin and Ethereum, making it one of the lowest rates within the European Union. Taxable events will include the sale, exchange, or use of cryptocurrencies for payments and donations. Losses will only be offset against gains generated from crypto transactions within the same tax year, with no provision allowing losses to be carried forward.

Diverging Approaches Across Europe

Several European countries have adopted markedly different policies. Greece is preparing legislation that would introduce a 15% capital gains tax on cryptocurrency profits, with the first €500 of gains exempt from taxation. Germany classifies cryptocurrencies as private assets. Gains are generally exempt from tax if the assets have been held for more than one year, distinguishing the country from many other European jurisdictions.

Other Key Jurisdictions

Portugal continues to offer favorable conditions for long-term investors, with private individuals generally exempt from taxation if digital assets are held for more than 12 months. Switzerland treats cryptocurrencies as part of personal wealth, subject to annual cantonal wealth taxes, while capital gains realized by individual investors are typically exempt. France applies a flat tax of 31.4% on cryptocurrency gains, combining income tax and social contributions. Italy recently increased the tax rate on crypto gains for individuals to 33%, up from 26%, while Spain applies progressive rates ranging from 19% to 30%, depending on the amount of profit realized.

The Netherlands And The Baltic States

The Netherlands uses a different model, taxing presumed returns on assets regardless of whether they have actually been sold. Tax treatment in the Baltic region varies. Lithuania generally imposes a 15% rate, rising to 20% for very high non-salary income. Latvia applies a 25.5% capital gains tax, while Estonia taxes cryptocurrency gains at the standard personal income tax rate of 22%, without exemptions for long-term holdings.

A Diverse Tax Landscape

Approaches to cryptocurrency taxation continue to differ significantly across Europe. Cyprus’ upcoming framework places the country among jurisdictions offering relatively low rates and dedicated rules for digital assets, while investors operating across borders continue to navigate a patchwork of national tax regimes.

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