Dairy demand set to overtake supply [VIDEO]

The seventh Tetra Pak Dairy Index indicates global dairy demand will rise by 36% by 2024, overtaking the available supply.

The report highlights the opportunities and challenges posed by rising global demand. The company said producers in both developed and emerging dairy markets need to address the careful balancing act required to ensure sustainable business success.​

Tetra Pak's Dairy Index reveals that the predicted surge in global demand for milk will largely be due to population growth, rising prosperity and urbanisation in Africa, Asia and Latin America. However, milk supply and demand is imbalanced across the world – rising demand in emerging dairy markets is unlikely to be fulfilled by locally produced raw milk, while developed dairy markets producing a milk surplus face the challenges of competing for the export and responding to falling domestic consumption.

Dennis Jönsson, president and CEO of Tetra Pak Group said, “The predicted surge in global demand offers a huge opportunity for dairy companies in developed markets to export powder and ambient liquid dairy products to growing economies. However, to ensure long-term success, these producers need to balance the 'quick wins' of export against the requirement to continue to grow their domestic markets.

“Meanwhile, dairy companies in import markets must overcome the challenge of securing a sustainable, high quality milk supply while keeping pace with growing demand.

“Markets such as China and Saudi Arabia are doing so in multiple ways: increasing investment in domestic dairy farming, partnering with well-established foreign companies, and diversifying their offer with value-added products.

“Fundamentally, these are measures that will help to achieve the vital balancing act of shoring up the future of a sustainable dairy industry."

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Above: Tetra Pak's video on the Dairy Index 7

 

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