Demand for dairy is growing worldwide

Global demand for dairy products will grow steadily over the next decade. Consumption will grow by an average 2% per year. At most, milk production in the European Union will grow by 1%. These figures were presented in the European Commission’s report “Prospects for EU agricultural markets and income 2015-2025” which was published today.

The Commission expects that the currently low milk price will recover soon. However, dairy farmers should be prepared for sharply fluctuating price levels over the coming years.

The European Commission’s forecast corresponds with the conclusions of the Engine of the Economy report commissioned by the Dutch Dairy Association from Roland Berger Strategy Consultants earlier this year.

Dutch dairy companies have already begun to respond to the growing demand for dairy. Between 2013 and 2015, they invested around 2 billion euros in building new factories and in expanding existing processing capacity.