What becomes of output
The news comes that Danone is set to sell off its US organic dairy businesses as part of its portfolio review and asset rotation, according to Agriland. Horizon Organic and Wallaby have long pedigrees in the sector for milk, creamers and whiteners, yogurts, cheese and butter.
But it does make one wonder what is happening in that segment, as another article in DW discusses how German organic farmers “are in despair,” after the passing of new regulations to make agriculture more sustainable, which the farmer has to handle in an era of rising inputs such as fuel and feed, and inflation.
German farmers protested this last weekend over obtaining more support for the government’s plan. Six farms close in Germany on average every day, DW notes, with 250,000 farms across the nation.
More broadly, a DSM event in Ireland had a discussion of how EU and New Zealand production are set to decrease in the milk output and exports areas in the future, driven by environmental constraints, according to John Allen of Kite Consulting. Allen notes that net importers won’t be producing more milk themselves, although they want to consume more dairy. The world market will want to consume 88 billion litres by 2030, but current trends are to produce 50 billion litres for export, he predicts. The shortfall will be the equivalent of two UKs, he adds.
In some ways, it is good for the local UK market, if the official government policy of producing more milk for exports holds firm. That being said, if a global demand is the amount of two UK total outputs, there is probably no way one country can fire up so many cows and produce so much extra milk. Expect to pay more for your average carton of milk
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- Suzanne Christiansen, editor, Dairy Industries International.
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