EUROPE – A new report suggests that the dairy industry in Europe is being given a more secure footing through innovation and structural change.

The study, carried out by Zenith International, shows that in 2002 butter consumption rose by 0.1% to 1.75 million tonnes, while cheese consumption was up 2.6% to 7.18 million tonnes.

However, the consumption of drinking milk fell 1.8% to 33.3 million tonnes. The report indicates that new segments, such as organics and probiotics, hold the key to growth in the future and that research, product development and marketing activity are vital.

The report’s forecasts to 2006 anticipate that butter consumption will remain static, cheese consumption will rise 1.5% per year and that drinking milk consumption will pick up in 2003 before resuming a slow long term decline.

More information on the 2002 Zenith West Europe Market Report is available from [email protected]