Comment
on This Week's Top Story After You've Read It
This Week's Other Stories:
EDITORIAL COMMENT: School Meal Final Rule: More Of The Same Failed Ideas
OTHER
NEWS: Saying Voluntary Food Industry Efforts Have Failed, CSPI Seeks Mandatory Sodium Cuts
OTHER NEWS: Dairy Groups Applaud USDA School Meal Rule; IDFA Says Milk Consumption Will Fall
GUEST
COLUMNIST:
An Interview With
Jim Sartori by John Umhoefer
COMPANY
PROFILE:
Jerome Cheese Adds Flexibility To Output; Targets West Coast, Export Mozz Customers
Subscribe
|
Global Dairy Market To Keep Growing; Whey Demand Growth To Outpace Cheese
The global dairy market will expand at 2.4 percent per annum over the next five years, but that growth will be unevenly spread, generating some important market dynamics, according to the Rabobank Food & Agribusiness Research and Advisory report, Global Dairy Outlook: Show me the money.
Economic, demographic and dietary trends are likely to see cheese sales further mature and grow more slowly in volume terms than the broader market, the report said. Meanwhile, with sales of higher-end whey products “hitched to a faster moving wagon,” the strategic value of “whey pools” is “rising rapidly,” justifying a re-evaluation of ingredient production and sourcing strategies.
“The divergence of cheese growth and whey demand represents a major structural shift in the market,” commented Tim Hunt, global dairy strategist for Rabobank.
Rabobank said cheese sales are likely to be slower over the next five years than the last five years and will underperform the market more generally in terms of volume growth.
“To a large extent, this is a case of being in the wrong place at the wrong time,” the report said. Most of the world’s cheese is still consumed in North America and western Europe.
In those regions, growth in cheese consumption has been slowing for some time, given heavy penetration levels, health trends, inroads by substitutes and a rapid escalation in costs, the report continued. With population growth set to slow further and a period of economic stagnation ahead, the rate of sales growth is likely to be “very modest” over the medium term.
While emerging regions are expected to offer strong dairy
...more
|
