BELGIUM – Producers, processors and retailers working together was a theme running through talks at the International Dairy Federation’s (IDF) World Dairy Summit, held in Bruges, Belgium, this week.

Speaking on the future of the dairy industry, Kempton Matte from Canadian processor Saputo said that consolidation will continue in coming years, and that joint ventures between producers and processors will be common. “Those who do well will be those who understand that dairy is a marriage of convenience between producers and processors,” he said.

“We need to overcome the incredible lack of trust between the two communities,” he continued.

Also at the event, the IDF launched its annual World Dairy Situation Report. In the report, the IDF blames drought and depressed market returns for slowing growth in dairy production. World dairy production for 2003 is expected to be up 1.1% on 2002.

It also notes that new World Trade Organisation rules on dairy trade, which are being discussed in Mexico, are unlikely to have an immediate impact on the industry.