Demand for dairy products in China and Southeast Asia to grow

milkcan-pixabayThe demand for USA's dairy products will be high from Southeast Asia and China. (Image source: Pixabay)Southeast Asian nations and China are touted to be big markets for dairy products from the USA, stated a dairy analyst from Rabobank

On the whole, the global need for milk will hit 20.4bn litres by 2020. Specifically, China will need an additional 3.1bn litres and Southeast Asia 2.72bn litres by the same year. By such time, the USA is well placed to cater to the growing demand for milk.

Even though the current price in the international dairy trade circles rival the lows of the 2009 crash, the fundamentals of strong dairy demand remain, and USA is in a good position to fill the demand.

Rabobank dairy analyst Hayley Moynihan said that the long term prospects for dairy exports are “exciting” and the total global demand will go up. It is expected to increase global traded volumes by 20mn tonnes (liquid milk equivalent) to 100mn tonnes.

While USA remains a major producing hub, New Zealand’s rapid growth in milk production is beginning to get challenged, and it has lost its lower-cost advantage. The main reasons are difficulty in procuring land, labour, water and the increasing cost of environmental regulations. The relatively softer constraints include negative public opinion and resistance to change, added Hayley.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?