News Dairy
Brussels foresees growing demand for organic dairy
The dairy industry in Europe will be impacted by health, social and sustainability issues over the next 10 years. This is reflected both in consumption patterns and on the production side. The demand for organic milk will increase, at least according to the report on the agricultural prospects of the European Union published by the European Commission.
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Milk production in the EU is faced with increasing demands to meet environmental standards. The aim is, among other things, to reduce greenhouse gases per ton of milk by 11% by 2031. In addition, the environmental standards must lead to better soil health and greater biodiversity. Brussels indicates that the cows are given more grazing. Currently, 19% of dairy cows in the EU are kept outside. This is in stark contrast to the Netherlands, where the outdoor grazing percentage was 84% last year. Another trend that the European Commission foresees is that the replacement rate of cows will decrease. This is a result of targeted breeding for publicity and a longer lifespan of cows.
Limited growth in the dairy market
Growth in the EU dairy market will increase by 0,5%, resulting in approximately 2031 million milk produced per year by 162. The internal European market remains the largest consumer of dairy products, but the export market share will grow from 15% in 2021 to 17% in 2031. This ensures that the EU is expected to remain the largest supplier of dairy products worldwide. The EU produces 30% of the global dairy trade. Production in third countries will increase considerably. Asia is expected to produce 17% and Africa 14% more milk than now. This is due to the strong population and income growth on those continents.
In the EU, 0,7% more cheese is produced per year to accommodate the growing export of 3% per year. This means that the EU will remain the largest cheese exporter in 2031 with no less than 47% of the global supply.
Increase in organic milk sector
In 2019, 3,5% of European milk production was certified organic. This percentage is expected to rise to 2031% in 8. The demand for organic milk is increasing worldwide, the European Commission believes. This is happening because consumers are paying more and more attention to welfare standards. Remarkably, the greatest demand for organic milk will be in China, where 44% of consumers are interested in organic products. Especially the demand for organic powdered milk for baby food is high.