Titled ‘Strong Headwinds Weigh On Trade Growth’, the report highlights the number of issues that still affect the global dairy market: the slowing of demand growth from China, the Russian trade embargo, low oil prices, etc.
According to Kevin Bellamy, global strategist dairy at Rabobank and author of the report, these issues will continue to influence a slower growth rate of the global dairy market, which will be driven more by population growth rather than per capita consumption increases.
In 2015, the growth in trade was only 0.3 percent more than the previous year. In the next three years, growth is predicted to decrease slightly.
Fortunately, at the moment further rapid expansion of export volumes for dairy products will be more difficult, the report says; New Zealand expansion is limited by land availability, Europe’s consumption has stabilised after milk quota removal, and the US export ambitions are limited by domestic demand growth.
Looking at the different markets of the world, Asia however, will continue to be a highly competitive battleground for exporters.