Better times ahead for milk ingredients?

Danish experts expect Asian demand will be key to recovery

Difficult conditions in the milk-ingredients market will give way to growth, thanks to strong demand in Asia, according to a new report.

In 'The World Market for Milk Ingredients 2008-2011,' Denmark-based 3A Business Consulting said an imbalance in the supply and demand for dairy ingredients has resulted in a surplus of stocks and price volatility.

But, it said, there are clear signs of milk-supply reductions that will rebalance the market and provide a stimulus for both volume and value growth in the future.

3A said the world market for milk ingredients continues to grow by three per cent annually in volume terms, but in terms of value, it is significantly down, with commodity prices having fallen by 40-50 per cent from their peak in the summer of 2007. It is estimated that the world market for milk ingredients was worth about $19 billion in 2008.

Despite the crisis, the main drivers for dairy still remain intact, the report said. The world's population continues to grow; living standards in the long term are improving; dairy consumption is increasing; and consumers are increasingly motivated to buy products sold on a health and wellness platform.

Consumption of dairy products is increasing, particularly in the Asia-Pacific region, the report said, which points out that this part of the world constituted the single-largest milk-ingredients market in the world, with a market value of $7 billion in 2008.

Furthermore, it is the largest import market in the world, buying in about 30 per cent of all milk ingredients traded on the world market. The European and the US milk-ingredients markets remain domestically supplied and were worth, respectively, $4.6 billion and $3 billion in 2008.

The report also noted that future success may lie with added-value milk ingredients, such as milk-protein isolates and hydrolysates. These, said 3A, have not been subject to the same price volatility as more basic commodities, such as milk powder and casein.

For more information about 'The World Market for Milk Ingredients 2008-2011', visit

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.