EU explores prospects for dairy

The European Union says that medium-term prospects for milk and dairy commodities are favourable and will be driven by steadily growing world demand through 2024, according to a report on the outlook for EU agricultural commodity markets. Milk production is expected to increase in the EU as well as in the other main milk-producing regions of the world, and EU milk prices are set to remain firm at around €350 per tonne, due to slowly growing domestic consumption, which accounts for around 90% of EU production.

Milk deliveries may reach 158 million tonnes by 20204, but the expansion of milk production will be limited by increasing production in other parts of the world, the rate of world import growth, environmental constraints and limited potential for higher consumption in the EU, the report notes. Milk powders and cheese will absorb most of the additional milk produced, with higher cheese production of 11 million tonnes by 2024. SMP production will reach 1.6 million tonnes that year.