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World Milk Production Surge Outlined by Dairy Situation Report

22 September 2015

GLOBAL – World dairy markets have dealt with a 3.3 per cent increase in milk supply for 2014 alone, the global dairy industry heard today.

An extra 802 million tonnes of milk was produced over 2013 levels, delegates at the International Dairy Federation Summit (IDF) were told at the release of the World Dairy Situation 2015.

The IDF’s flagship report charts the sliding dairy markets through 2015 as all major production regions led to a supply surge which crippled prices.

Report editor, Veronique Pilet explained that, last year, “abundant milk deliveries” led to significant upturns in production of butter and milk powders.

As a result, international dairy trade grew by nine per cent, she added.

“This did not prevent dairy markets plummeting almost continuously until 2015,” said Mrs Pilet. “On average farmgate milk prices reached record highs in 2014 before a serious downward trend.”

The report chronicles the good times before the “serious downward trend” in 2015, in which record highs were eroded.

This was recently described as a “perfect calm” before a “perfect storm” by Promar International’s senior consultant, Andrew McLay.

Addressing UK Dairy Day last week, he blamed market imbalance on difficult farmgate prices.

The IDF Summit heard that global per capita consumption would increase by 13.7 per cent by 2023.

“Consumption should increase all the more in developing countries,” Mrs Pilet added.

“Mergers and acquisitions are still intensifying and becoming increasingly global.

“International projections expect a population of 9 billion inhabitants in 2050, and thus an increased need for food in the coming decades. In 2014, global per capita dairy consumption was estimated at 110.7 kg.”

Michael Priestley

Michael Priestley
News Team - Editor

Mainly production and market stories on ruminants sector. Works closely with sustainability consultants at FAI Farms



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