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Farm Expansion Possible Due to Future Milk Demand

01 May 2013

GLOBAL – Efficient farmers with low costs should be looking to expand their businesses after quota removal, a dairy markets expert told Dairy UK.

World demand is predicted to rise 2.4 per cent for the next five years amounting to an annual increase of 18 billion litres of milk being required by the market.

This is according to Kevin Bellamy, Senior Analyst at Rabobank, who told Dairy UK that exporting may be the way forward but UK farmers will benefit from worldwide price increases by selling at home.

“The UK will benefit anyway, demand for milk in all regions will go up. Arbitrage between markets will mean the UK benefits from the higher prices - which will be encouraged,” said Mr Bellamy.

“The UK itself is not self-sufficient, it imports about 20 per cent of the milk it needs. Isn’t it far better to win back home markets, to go for the 63 million consumers that the UK has.”

According to Mr Bellamy the UK’s dairymen are some of the most efficient and low cost farmers in Europe. He suggested that farmers with these atrributes should benefit from expansion.

TheCattleSite News Desk

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