South America Set For Dairy Increase

NEW ZEALAND - The FAO and other specialists of the Dairy Industry predict that, by year 2027, world demand for dairy products will have increased 20% while the price of milk will maintain the same and South American countries will become the key players of the world market for supply of dairy products.
calendar icon 3 May 2007
clock icon 2 minute read
Farm for Sale in Uruguay
Only 35 km from Mercedes and 300km from Montevideo this 739ha farm runs alongside the Black River giving plenty of water for irrigation Coneat=120. 60% of the soils are suitable for cropping. House for staff and attractive main home too.
The world needs more milk. The economies of India and China are growing at a rate of 10% per year and their acceptance of dairy products appears to be increasing. In addition, oil producing countries can afford to feed their people better and the world population increases at a steady rate.

So far, New Zealand and Australia have 60% of the world market, but who is going to supply the market in the future?

Northern hemisphere countries are not able to increase their production, so all eyes are on South America.

These countries, especially Argentina, Chile and Uruguay, have weather conditions that allow farmers to feed their cows on pasture and keep them outdoors all year round. Producing at low cost under pastoral conditions seems to be the way dairy farmers here will be able to supply the growing demand since grain and other supplementary feeds have become very expensive and are not likely to change.

International companies know about this and have been establishing connections with local ones, such as Sancor in Argentina, Soprole in Chile, Conaprole in Uruguay and Nestle in Brazil. Farms are being managed by business orientated people, following a similar trend as other countries such as New Zealand and USA.

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