For the dairy and livestock industries, the agreement raises concerns about market access and price pressure. Analysts point out that while the deal aims to expand trade flows, it may simultaneously expose European producers to lower-cost imports, potentially undermining farmgate returns and long-term sector stability.

The study also questions assumptions around export growth, noting that anticipated opportunities in South American markets may not fully materialize. Structural barriers, logistical challenges, and differing consumption patterns could limit the extent to which European dairy exporters benefit from the agreement.

Environmental and regulatory disparities are another key issue. The report highlights that producers within the European Union operate under stricter sustainability and animal welfare standards, which can increase production costs and reduce competitiveness against imports from Mercosur countries.