Outlook for dairy post-quota

The signs are healthy for Irish dairy post-quota. This is according to a recent dairy industry news conference in London. In an information update from Michael Hussey, food and beverages division of Bord Bia, there was general agreement that the medium-term prospects for dairy products appear favourable post-quota April 2015.

The Bord Bia information update stated: “There was general agreement that the medium term prospects for dairy products appear favourable with trade expected to be underpinned by strengthening demand from emerging markets, although volatility within the sector will still persist.”

“According to Tassos Haniotis of the European Commission, Global growth in dairy consumption is projected at 2.5 per cent per annum into the medium term. Global consumption is forecast to grow by 15 per cent for cheese, 22 per cent for SMP and by 25 per cent for butter by 2022.”

According to the commission, EU exports of dairy commodities will grow at different rates, faster for SMP and cheese and less fast for WMP and Butter.

According to the report, in the EU milk production is projected to reach 159.3 million tonnes by 2022, this would represent an increase of around just 4.1 per cent on 2012 levels. However, the EU dairy herd is projected to decline by 3 per cent to 22.2 million cows by 2022, although lower cow numbers are expected to be offset by higher yields per cow.

Most of the increase in milk production will occur in North Western Europe along the sea coasts where grass-based systems are more prevalent. This area includes Ireland, Germany, Netherlands, France, Denmark, Belgium, Austria and Poland, the report concluded.

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