The dairy industry is a changing market at the moment. Raw material prices have risen over the past few years which is significantly increasing the cost of milk production. These higher raw material prices also seem likely to become more volatile, meaning more uncertainty on supply and costs. Although milk prices have increased over the last twelve months, in most cases the rise is barely enough to cover the increase in production costs. Demand for milk and milk products is likely to increase aroundthe world as the total global population expands and personal wealth in developing nations such as China and Asia grows. Increasing wealth facilitates increased westernisation of diets, including a rise in dairy and meat consumption.
展开▼
