2018 world consumption growth set to match increased production

Published 29 November 17

World consumption of fresh and processed dairy products is expected to grow annually by 2.1% and 1.7% respectively, according to the latest FAO ten year outlook. Developed countries are expected to be focused on processed products while developing countries will be looking at those as well as fresh. Milk production across the 5 key dairy exporters looks set to increase by 1.5% in 2018 and cover off a lot of the demand for processed products while demand for fresh dairy is likely to be satisfied with domestic production.

2017.11.30 world consumption

In terms of global trade, forecasted export growth of powder products is in line with consumption growth forecasts for developed countries. Cheese and butter export growth forecasts are slightly less aligned, with export growth forecasts around 2% but consumption growth forecasts around 1%. This will partly be down to a lower base for exports; globally only about 11% of cheese and about 8% of butter production is traded internationally.