Global outlook strong for dairy as demand set to rise

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.

See also: Global Dairy Trade price rise gives flicker of hope

“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.

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