The European Union’s dairy industry has been in flux since its quota system ended in March 2015. Europe’s dairy prices crashed as EU production increased by 3.2% between 2014 and 2016. EU regulators intervened in 2015 after skim milk powder (SMP) prices in 2015 hit their lowest point since 2009. Yet, slowing global skim milk production in 2016 has allowed Europe to export their troubles away. The region may not be so lucky going forward if global skim milk prices continue to retreat in 2017.