IFCN Dairy Outlook

According to the International Farm Comparison Network’s (IFCN) Long-Term Dairy Outlook, global milk production will increase by 25% to 1,038 million tonnes by 2025.  The annual report by the German agency, gives a 10 year forecast of the dairy industry in 2025.  Growth in South Asia is expected to account for more than half the increase in production.  Western Europe is forecast to increase production by 9%.  But according to the report, this increase in global supply will be met by a 25% increase in demand.  IFCN forecasts an annual average growth in demand of 2.3% compared with 2.4% over the last ten years.

Supply will be driven by a 9% increase in the number of animals and although the number of farms is predicted to fall to 103 million in 2025 compared with 111 million in 2015, these fewer farms will produce more milk; average milk yield is forecast to increase by 14% to 2.5 tonnes of milk per cow/buffalo per year.  Average world milk production per farm is expected to increase by 47% by 2025.

Demand will be driven by population growth and an increase in consumption per head.  IFCN forecasts global population will rise to 8.2 billion people by 2025 (12% increase) with each person on average consuming 12% more by 2025; consumption growth will be highest in South Asia.  Further information from the report can be found at http://www.ifcndairy.org/media/downloads/20160928_IFCN-Article_Long-term-Dairy-Outlook.pdf