November 24, 2004

World Dairy Markets Experiencing Major Changes

The world dairy markets are undergoing a time of fundamental changes, according to the International Dairy Federation (IDF) on Tuesday.

The world's dairy industry is seeing rapid changes brought by less protected developed markets, the interlacing of markets as well as a growing competition worldwide, said Chairman of the IDF Standing Committee on Dairy Policies and Economics Adriaan Krijger.

In Europe, the enlargement of the European Union by 10 countries has become a challenge for the dairy industries in the new member states. But it also creates new market growth opportunities, he added.

Meanwhile, the markets of liquid milk treated in dairy factories are characterized by stagnation in established markets. However increase should be seen in emerging markets like China and in Central and East European markets as result of the structural changes.

Products of higher added value will also continue to grow. However, parts of the more traditional range of products like butter, condensed milk and skim milk powder are stagnating or even declining, according to IDF findings.

But the productions of whole milk powder, cheeses and ingredients are continuing their growth both in established and emerging markets.

The international trade is increasing further and faster after the economic recovery of the recent years, particularly in countries or regions which are regarded as emerging markets.

The IDF is a century-old international industry body with over 40 member countries and regions around the world. It serves as a forum for discussion and exchange and a dairy information center.