Positive Prediction for the Dairy Industry

Oct 07, 2014

Farms.com

The dairy industry received positive news this week due to predictions offered by food processing and packaging giant Tetra Pak. A report released by the organization expects that global demand for dairy will increase significantly over the next decade.

The report identifies opportunities in the dairy industry for markets throughout the world. Emerging populations like Latina America, Africa and Asia show great potential for demand of dairy products. The current prediction states that demand could increase as high as 36 percent by 2025. Tetra Pak believes that local markets in these regions would be unable to accommodate the increase in demand. This provides an opportunity for established dairy producers to supply their product at an international level.

At the present, the dairy industry is facing difficulties in marketing their products domestically. Producers are often in surplus situations and facing a decline in dairy demand. It is estimated that less than 50 percent of adults in America consume milk. As of 2013, the US saw the lowest sales of milk in thirty years.

The decline in milk sales in America and the increased opportunity abroad has great potential. However, Tetra Pak suggests that the dairy industry should continue to focus on their domestic market. Differentiating products creates an opportunity to appeal to large groups of the population who have discontinued drinking milk. Flavored milk, cereals and investments in new products have the potential in increasing the demand for milk products. The dairy industry should continue to innovate at their foundation to prepare for the growing demand of their product on the world market.

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