EUROPE – The market balance for major dairy products is expected to improve over the medium term, according to the latest European Commission figures.

The Commission has updated its forecasts up to 2009, which were originally released in June 2002. The report predicts that cheese production and consumption will increase, while butter and skimmed milk powder will experience lower availability.

Higher milk production caused by milk quota increases decided under Agenda 2002 is expected to slow down the long-term decline of the dairy herd. With a forecasted increase of an average 1.4% per year to 2009 the number of dairy cows in the EU is projected to decline from 20.1 million animals in 2001 to around 18.1 million by 2009.

The report consists of market projections that are based on factors including macro-economic conditions, trade policy and weather conditions.