Dairy Demand Growth Expected to Continue Until 2025

A global growth in milk demand of more than 20 million tonnes per year is expected to continue until 2025, according to the new Long-term Dairy Outlook from the International Farm Comparison Network (IFCN).

IFCN estimates the global milk demand growth at 25 per cent over 10 years, or 2.3 per cent per year. The key driver for this demand growth is the growing global population as well as an increase in milk consumption per person.

Torsten Hemme, Managing Director of IFCN, commented: “There will be one billion more consumers on this planet who will have a demand for milk products.

“Globally, each person will consume 13 kg more in Milk Equivalent over ten years (i.e. 127 kg per person in 2025). Therefore, the level of global milk supply will also keep growing, provided that the consumers still have positive preferences for milk and the political and overall economic situation is stable.” – Click here to read more.

In other news, this week’s Global Dairy Trade auction saw a fall in the overall price indices of 3 per cent. Butter and other fat prices had previously been rising rapidly, helping to pull up the overall auction price.

However, the Irish Farmers Association (IFA) National Dairy Committee Chairman Sean O’Leary said the recovery trend in the dairy markets remains solid, with output easing in all regions bar the US.

“Since mid-July, the GDT index has increased 28 per cent, even allowing for this small decrease. This trend is based on lower global milk supplies, and these are also pushing EU dairy commodity prices up in a way which makes it clear that dairy markets are now in full recovery mode,” he said – read more.