This explains the global dairy supply and demand outlook through 2034 jointly published by the OECD (Organisation for Economic Co-operation and Development) and FAO (Food and Agriculture Organization of the United Nations).
Global dairy production is expected to continue growing at an annual rate of 1.8%, reaching 1.146 billion tons by 2034. Regional trends show India and Pakistan driving significant increases in production, while advanced countries such as the EU and New Zealand are predicted to experience slower production growth. Production is expected to increase in Africa, the Middle East, and North Africa (MENA) regions, with particularly significant expansion anticipated in Asian regions for both production and demand.
For major dairy products, demand for skim milk powder (SMP) and whole milk powder (WMP) is expected to increase, with the EU and New Zealand expected to maintain their positions as major players in export markets. Prices are predicted to remain stable, and trade volumes are expected to continue gradual growth from record export levels in 2024 through 2034.
Major factors driving demand expansion include population growth, economic development, and changing consumption patterns, which are expected to interact to support sustained growth in dairy product demand.
The article concludes that the global dairy market will maintain a stable growth trajectory while experiencing structural changes between regions.