Good News From World Dairy Situation Report

November 27, 2013 — There is good news for dairy farmers and dairy companies in the annual World Dairy Situation report, which was released last month by the International Dairy Federation.

Peggy Armstrong, IDFA

Peggy Armstrong

IDFA’s Peggy Armstrong updated DairyLine listeners in this month’s “Processors’ Perspective.” This year’s report  sees a bright future for dairy: “The long run prospects for dairy globally are encouraging increased investment in the sector and are a cause for industry confidence,” it says.

In 2012, world milk production increased 2.2 percent from the prior year, and world output increased for every kind of dairy product.  Global per capita availability of milk in 2012 was on average 109.4 kilograms, up 1 percent from 2011.

All this dairy growth resulted in world dairy trade reaching 61.9 million metric tons in 2012, an increase of 8 percent compared to 2011, which is double the average of 4 percent during the previous 10 years. The report notes this “reflects the increasing geographical imbalance between production and consumption of dairy in the world.”

Meanwhile, dairy consumption is growing the most in South America, Asia and Africa.  Between 2005 and 2012, per capita consumption of dairy grew 27 percent in South America, led by large increases in Brazil, Columbia and Venezuela.  In Asia, dairy demand growth led to a 22 percent per capita increase in that region.  And in Africa, where dairy per capita grew overall by 16 percent between 2005 and 2012, large increases were noted in Algeria, Kenya and Egypt.

The report attributes the growth in dairy trade to the fast-growing demand in emerging countries that exceeds the capacity of local dairy production and processing, and will continue to drive increases in world dairy trade to meet that demand. You can read more about the world dairy situation in Dr. Bob Yonker’s Dairy Market Update at




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