Who will profit from changing global dairy markets?

Dairy markets are complex and reliant on a number of factors. There are expectations over the next year that New Zealand production will decrease from current levels (due to low prices) and that dairy companies are entering new, high-demand markets, including sub-Saharan Africa.
A shift in product movements may also reduce the burden of the Russian ban on imports, which affected the equivalent of 3billion kg of EU milk when it came into force. It is clear there is a changing dairy market that is focusing on achieving maximum value for increasing milk supplies.
The second session of the day was on ‘sustainability’ and Professor Johan de Tavernier from Leuven University spoke on a range of issues, aiming to stir some controversy.
The need to produce milk in an increasingly efficient way was pitched against the demand from consumers to have more choice and the urgent need for farmers to receive a fair price. Can we achieve all of these needs simultaneously? As an industry we’ll need to continue aiming high to meet these conflicting demands.
Friday heralded the main event: The EDA World Dairy Forum. The session, chaired by Rabobank’s Kevin Bellamy, was a unique opportunity for discussion between some of Europe’s most prominent dairy industry figures. Representatives from Arla Foods UK, the Global Muller Group, Meggle (in Germany), Glanbia Cheese and Graham’s Dairy all presented with DG Agri.
Each business leader laid out their own company situation, individual activities were detailed, with every discussion coming back to the need to maximise the value each company makes on behalf of their farmers. It was reassuring to hear again and again that everything comes back to the farmer and new markets are being explored. To do this, each company is exploring different routes, whether that is in specialisation, globalisation, consolidation or another measure.
Despite the pressure everyone in dairy is feeling, it is heartening to know that dairy farmers and their products are well respected across Europe and that many do see a brighter future despite the difficulties we are currently facing.