IDM | Market analysis
demand surpassing the milk supply whit
record high world market prices as consequence.
The global fiscal crisis from 2008
to 2012 (the longest and the deepest crisis
since WWII) impacted the dairy industry significantly.
The world market prices for dairy
products were more than halved and the industry
and dairy farmers suffered severely.
The scenario changed again during 2012
where the world economy began to recover
and the demand for dairy products increased
lead by Asia and especially China. However,
this upturn lasted only until the end of 2014
where the Chinese demand for dairy products
decreased and the Crimea – crisis led to
the imposing of a ban on all western dairy
products by Russia from August 2014.
At the same time the world milk supply
continued to expand and create increasing
DSM Food Specialties
DSM has named Patrick Niels President of DSM Food Specialties, effective 1 August 2017.
He follows Ilona Haaijer who left the company.
28 · 8 2017 | international-dairy.com
surpluses in EU and the US. In EU, the milk
quota system was abolished from April 2015
and the EU milk production increased significantly
already in 2015 and this continued in
2016. This resulted in a global over-supply
situation from 2014 to the end of 2016
creating hardship for dairy farmers and the
dairy industry in all developed dairy countries
in Europe, North America and Oceania.
The demand for dairy products began
first to improve at the end of 2016 and this
has continued in 2017 but the development
is still fragile with sudden GDX price reductions.
The increasing volatility on the world
market for dairy products since 2000 with
several changes has been a learning period
for the dairy farmers and the dairy industry.
The lessons have until now been that
is very difficult to adjust milk supply and
demand in a short period of time and the
imbalances have been unnecessary long.
The dairy farmers react to slowly on the
changing demand situation both in relation
to cut back production or expanding. This
has made the price volatility more outspoken
than necessary.
From 2017 to 2025, the world agenda for
the dairy sector will be challenging and to
some extend unpredictable because of the
new world agenda and the paradigm-shift
from rationalism to post-truth era based on
emotions.
The report "The World Dairy Industry and
the changing World Agenda 2017-2025" is
a must-have for any company seeking new
opportunities in the global dairy market. You
can order it a a special price of €1,500 at
mikkelsenpreben@hotmail.com.
New IDF Bulletin 487
It is important to identify the main drivers
of dairy product consumption in
various countries across the world to understand
the changes in market trends.
While overall, dairy markets worldwide
are enjoying positive growth, we
are seeing downward trends for certain
product categories in certain regions.
Economic development, the rise in
purchasing power, demographic factors
including marked population growth
in Asia, Africa and South America, and
middle-class growth will enable new consumers
to access dairy products. The integration,
slowly but surely, of new “Western”
products into local traditional diets in
many countries worldwide also provides
leverage for growth over the long term.
The innovative dynamism of the dairy
industry plays a decisive role in market
development with new product offers
and ever greater availability in stores.
The quest for tasty, healthy, easy to eat,
natural products also drives the development
of dairy markets.
On the down side, changes in eating habits,
especially the move away from eating
breakfast and dairy products at the end
of meals has negatively affected certain
products. The emergence and spread of
arguments against dairy products and cattle
breeding could also jeopardize this
balance with the trend toward veganism
becoming more fashionable, giving rise to
alternatives to dairy products.
Based on in-depth research conducted by
the International Dairy Federation’s (IDF)
national experts, this new Bulletin of IDF
n°487/2017 is intended to supplement the
existing World Dairy Situation report by
shedding light on global food consumption
trends, with a particular focus on dairy
products by geographic region.
132 pp – English only; Price: 250 Euros.
This Bulletin is available on the IDF Website
www.fil-idf.org
IDF has just issued a new Bulletin that
is shedding light on global food consumption
trends, with a particular focus
on dairy products by geographic
region (photo: IDF)