Joop Kleibeuker told DairyReporter.com that should current conditions persist, there is a genuine possibility that the market could face milk shortages in the near future.

"Certainly in my experience the problem we are facing is quite unique," he said.

In the last year, prices for raw materials like milk powder, vital to dairy processors, have continued to rise as demand outgrows supply.

The EU has suggested that the prices on the international dairy market are at a "historically high level." Last week they reached well above US$400 (€298)/100kg with cheese prices also approaching the figure in value.

In assessing a prominent cause, Kleibeuker added that price surges were the result of complex economic and environmental factors and not specifically related to any single factor.

Nonetheless, he accepted that significant increases in demand from emerging markets and oil rich nations had certainly been playing a part in driving up prices.

Source: foodnavigator.com