Global Market Overview of Milk

Delivery

This report comes in PPT.

Key findings

Vulnerability to climate change

Milk production is highly vulnerable to climate change, with recurring unusual climate phenomena and natural disasters, such as droughts and excessive rainfall, devastating grazing fields. Rising global temperatures result in pest and livestock diseases becoming more prevalent as well, hampering milk production.

Productivity growth

While milk production in developing countries continues to grow rapidly, yield productivity is still significantly lower compared to global standards due to inadequate feeding and veterinary services, as well as low genetic potential of cattle, constraining full milk production potential. As dairy demand continues to grow witihin developing economies, governments are increasingly investing in animal health and genetic improvement. Technological advancement of milk production systems is set to be among the major drivers of milk production growth as well, adding to rising profitability within the sector.

Competition from dairy alternatives

Rising awareness of food intolerances, dietary change, as well as growing concerns about climate change and intensifying animal advocacy lead to more intensive competition from dairy alternatives, negatively impacting demand for dairy. As a result, major dairy industry players are expanding their product base with plant-based options.

Sustainability

As livestock farms account for a substantial share of greenhouse gas (GHG) emmisions, the dairy industry remains subject to environmental regulations, especially in the EU, one of the leading milk producers. While regulations do add additional pressure to already growing input costs, which could potentially lead to slowdown in milk production, higher environmental awareness also produces opportunities, such as growing demand for organic milk.