A succession of supply and demand shocks have dented output growth but underlying fundamentals remain strong. Having said that, the means and locus of feed milling's expansion is also changing. What may catch many observers by surprise is that from 2011 to 2014 inclusive, world feed output expanded at CAGR of 3.9%, which is higher than its average rate of slightly over 3% seen in the first decade of the 21st century.
Booming incomes and population growth are coinciding with societal changes that boost demand for high-end dairy products by 10% or more annually. Unfortunately, a relatively slack supply-side response implies that painful policy decisions must be made. India's dairy market is the fastest growing large dairy market, it could grow a lot faster and more efficiently. Although it will probably produce more fluid milk than the entire EU within a year or two, India's dairy sector continues to be devilled by a variety of infrastructure and quality control issues.