Courtesy of his presentation to today’s Global 500 event in Dublin Rabobank’s Bill Cordingley stressed the need for the international dairy sector to copper fasten the integrity of its supply chain.
“Recent scares in China have served to significantly alarm consumers in that country,” he said. “The last thing international dairy companies need is a scenario within which young Chinese children and their parents start asking the question: is milk safe? Recent years have seen dairy imports into China increase by 60 per cent. And the opportunities for further growth in this regard remain more than significant.
“Exporters must deliver on full traceability from farm to plate when it comes to accessing all global markets, now and into the future.”
He continued: “But the challenge of traceability is one that impacts in every country. In this regard, it is very noticeable that larger dairy farms in countries such as the US have opted to go straight to the consumer with a range of products. In doing this, they are managing to significantly reduce the length of the supply chain.”
The Rabobank representative went on to point out that while only a small proportion of the world’s dairy output is exported, it is this particular trading aspect within the sector that is now determining farmgate and processor returns around the world.
“Matching product specification with the specific requirements of individual countries is a key factor when it comes to maximising the returns that can be secured for manufactured products. For example, where China is concerned, powders represent the key driver for that market. “
Cordingley concluded: “The growth markets for dairy are well known. And there is little doubt that countries such as China, Russia, Brazil and South East Asia as a whole will strive to increase milk output levels within their own borders. This, in turn, will present opportunities for existing farm businesses in North America and Western Europe to look at establishing ‘off-shore’ production facilities in these regions.”
Pictured Rabobank’s Bill Cordingley