All the world’s a trade

The news that US giant Land O’Lakes will be selling skimmed milk powder on Fonterra’s Global Dairy Trade platform offers yet more proof that our once-provincial world of dairy, where little production escaped a country’s borders, is becoming ever more global. Arla Food Ingredients has alos moved onto the trading platform. Similarly, Lye Cross Farms in the UK has secured funding to advances its ambitious plans in the Far East and other far-flung markets. What is becoming apparent is that the global appetite for dairy in all its formats shows no signs of slowing down.

New Zealand and Ireland have long known this, being large dairy production sites with a small domestic market. Their movements in exports was a natural outgrowth of their circumstances. However, even for them it is all change, as new entrants look towards dairy to boost exports and improve the bottom line. They have fiercer compeititon than ever before in markets they could have comfortably claimed as their own previously.

It all makes for very interesting times ahead in dairy.