Global dairy demand and trade projected to grow
Global markets for milk and dairy products are expected to grow, according to a report by the Australian Bureau of Agricultural and Resource Economics.
Increases in worldwide consumption of milk and dairy products, particularly in developing markets, are expected to buoy the global dairy market over the next few years. While 2010-11 price increases are expected to be minimal, recovering markets around the world are expected to rise in 2013-14. Australia’s dairy volumes are projected to decline as herds are culled and water allocations are reduced, but should recover barring unusual climate events.
Domestic markets are also set to increase, with lifestyle changes and population growth increasing demand. Dairy Australia reports that milk consumption has been steadily shifting to modified milk types (such as reduced or low-fat milks) from regular milk.
The total value of Australian dairy exports is forecast to increase by 7 per cent to $2 billion in 2010-11. Over the medium term, the total value of Australian dairy exports is projected to remain around $2 billion (in 2009-10 dollars) in 2014-15, which reflects relatively lower projected world dairy product prices toward the end of the outlook period.