Don't let the current decline in producer milk prices get you too far down. A major outlook report says that within 10 years, anyone who has milk to sell will find an eager and hungry global market.
In fact, the latest issue of Tetra Pak Dairy Index predicts that "booming" worldwide demand for dairy products will simply outstrip supply. The resulting gap will likely persist despite rising milk production, and higher milk prices are almost inevitable to result.
"The next decade will create unprecedented challenges and opportunities," says A Global Balancing Act: Dairy Supply & Demand. "The dairy industry is approaching one of its most transformational eras. As a traditionally domestic focused industry, it is now facing the challenges and opportunities posed by ever increasing globalization. Dairy companies today need to take a worldview of the supply of milk and the demand of consumers."
One reason for this need in places such as the U.S. and Europe is flat or declining domestic dairy consumption, which will force them to either export more products or make less milk.
Among the other challenges that traditional exporters will face – the report says point-blank that they will struggle to keep pace with growing demand – is not enough processing capacity. The report says a constant need for product innovation will also be needed, and is already being driven by changing consumer tastes and lifestyles.
