Global demand for milk and dairy products are becoming increasingly insatiable, says a study.
Global Milk and Dairy Products Market 2014 Edition research report analyzes the development of the markets, with a focus on the top 7 milk producing regions of the world which includes the EU, the US, India, China, Brazil, Russia and New Zealand.
Off late, the wedge between demand and supply has continued to grow. However, increasing real incomes coupled with rising willingness to spend, changing consumer dietary patterns, increasing consumer awareness regarding the nutritional values of dairy products and waning price responsiveness are some of the major factors influencing the market growth.
On the supply side, relatively favorable weather conditions, higher export prices, improved efficiency gains, and continued focus on innovation and technology has resulted in improved supplies around the globe.
Despite increasing supplies, the dairy industry will remain tight but is expected to be more dynamic in the near future. Recent industry developments and demand trend arising largely from emerging countries led by China have placed the market comfortably on a higher growth path.
Besides, the smaller domestic production capacities, volatile global feed prices, the increasing use of high quality feed in traditional pasture-based regions, rising cost of primary inputs and sharp volatility in overall prices have fueled production costs in these countries which in turn has restricted production. This void has largely been filled up by imports rather than boosting domestic capacities.