Key drivers of the global dairy market: How might these affect UK dairy?

On the supply side, we see declines in the growth of the global milk pool, influenced by factors such as the increasing sustainability agenda and increasing cost of production. Alongside this we see a movement towards increasing components (fat and protein content of milk) as opposed to just production. Looking to demand, some of the market drivers include changing consumer preferences, economic recovery and growth in key importing countries and the increasing affordability of dairy in developing regions. The European Commission are forecasting slight growth (0.4%) in milk production in 2024, with more favourable weather conditions and increased yields, despite a declining herd. In terms of products, we are likely to see growth in butter and cheese production, whilst drinking milk and powders are likely to ease. On the demand side, the EU Commission foresee an increase in exports of cheese and whey, aided by higher milk solids availability and competitive prices. Conversely, ...