THE WORLD DAIRY SITUATION 2016.
The global dairy sector continues to face challenging times: milk prices have been on the decline in most parts of the world for the past two years and are currently rather low. While some degree of price recovery in the medium to long term is expected, a considerable level of uncertainty remains due to the increased production recently witnessed in the United States and the European Union, as well as the state of the global economy and geopolitical landscape.
While the long-term global demand for dairy products continues to increase- primarily as a
result of population and dairy consumption growth- the worldwide increase in milk production is currently not matched by corresponding demand. Overall demand for solids-not-fat is not increasing at the same rate as butterfat, resulting in growing inventories of several dairy products- milk powder in particular.
We would like to thank all IDF National Committees, the IDF Standing Committee on Dairy Policies and Economics, other international organisations and partners, as well as members and experts who contributed their time and expertise to this report. We extend a special thank you to the teams at ZuivelNL and the Centre National Interprofessionnel de l’Economie Laitière (CNIEL), who helmed the production of this important publication.
We hope that you will find this comprehensive report helpful in furthering your understanding of current macro supply and demand trends affecting the dairy sector, as well as the wide range of policies and economic factors influencing them in a world increasingly focused on sustainable development and nutrition.
Bulletin of the International Dairy Federation 485/2016