OECD/FAO outlook: Steady growth in dairy despite environmental concerns and risks
The OECD/FAO outlook 2017-26 for dairy and dairy products forecasts rising growth in production, prices and consumption in the decade ahead. New Zealand(32%), the European Union(24%), the United States(12%) and Australia(6%)will continue to dominate exports in cheese, whole milk powder (WMP), butter and skim milk powder (SMP) with export growth of around 2% per annum.
Even with almost universal consumption growth, small changes in demand from China can have a significant affect on world commodity prices.
Major increases in milk production are projected in both India and Pakistan, most of which will be consumed domestically in the form of fresh dairy products.
The report cites the affects of climate change through extreme weather events as risks.
Environmental legislation can have a strong impact on the future development of dairy. Greenhouse gas emissions from dairy activities are a large share of total emissions in some countries and policies related to reducing emissions and preserving and restoring water quality may affect future production.