Global consumption of dairy products is expected to rise by 36% over the next decade, according to a recent report by Tetra Pak.

With demand likely to outstrip supply, the outlook for the global dairy industry was extremely strong – but producers and processors would have to cope with volatile markets to secure their long-term future.

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“Although global dairy prices have been in decline for most of 2014, the report supports the view that global demand will sustain prices in the long term,” said a DairyCo spokesman. “Price volatility will continue but the deficit of supply is likely to bring about a rise in prices over the 10-year period.”

Emerging markets in Africa, Latin America and Asia would continue to demand basic products, while mature markets such as the EU required value-added products.

Although this would create opportunities for UK producers, shorter term restructuring was required. “Co-operation in the supply chain and industry consolidation will be important in securing sustainable supplies of milk and stable profits for dairy producers,” said the DairyCo spokesman.