Global Dairy Summit Explores Industry Challenges Amidst Climate and Market Pressures
Source: DairyNews.today
As global populations surge toward 10 billion by 2050, ensuring food security remains a critical focus for farmers and policymakers. At the recent International Dairy Federation (IDF) World Dairy Summit in Paris, industry leaders assessed the current landscape of dairy production across continents, addressing key challenges and opportunities in the sector.
South America: Scaling Amid Climate Uncertainty
Marcelo Carvalho, CEO of Brazil’s MilkPoint Ventures, highlighted South America’s evolving dairy landscape, with Brazil alone contributing over half of the continent’s milk supply. Over the past decade, dairy production has increasingly shifted toward larger operations, though the average farm output remains modest. Climate variability—driven by phenomena like La Niña and El Niño and exacerbated by extreme weather events—continues to challenge stable production levels. This year’s severe flooding in Brazil underscores the urgency for resilient agricultural strategies to stabilize the region’s dairy sector.
North America: Climate Adaptation and Regional Growth
Cornell University’s Dr. Andrew Novakovic presented data showing North America’s strong per capita dairy production growth, second only to Asia. However, shifting climates may influence regional production, with warmer patterns expected to benefit Canadian regions like the Maritimes while altering conditions in the southeastern United States and California’s Central Valley. Despite these shifts, North America’s reliable rainfall could provide a strategic advantage, particularly in eastern regions, reinforcing the sector’s resilience against climatic impacts.
Australia and New Zealand: Focus on High-Value Dairy and Climate Response
Joanne Bills, Global Insights Director at Ever.Ag Insights, outlined similarities between Australia and New Zealand’s dairy strategies, both focusing on high-value products like cheese for domestic and export markets. Climate challenges pose significant concerns, with both nations facing reduced water availability and increasing greenhouse gas (GHG) pressures. In New Zealand, regulatory changes and community demands are accelerating the shift toward sustainable practices, while in Australia, climate impacts intensify as government intervention remains limited.
European Union: Competitive Pressures and Sustainability Struggles
Milica Kocic fr om IFCN Ag pointed to Europe’s constrained milk supply, wh ere higher land competition and input costs challenge profitability. Rising operational expenses and outdated practices are pushing smaller European farms, particularly those with fewer than 100 cows, out of business. As policy uncertainty looms, European dairy leaders emphasize the need for cost-effective regulations to sustain the sector’s competitiveness amidst sustainability pressures.
Africa: Overcoming Productivity Hurdles and Investment Gaps
Africa’s dairy sector, though promising, represents only 5% of global milk production. Bio Goura Soule of PAOLOA emphasized Africa’s reliance on imports, a reflection of local production challenges like high feed costs and inadequate infrastructure. The Economic Community of West African States (ECOWAS) aims to double milk production by 2030, a target seen as crucial to reducing dependency on imports and strengthening the local industry.
Asia: Large-Scale Expansion and Self-Sufficiency Goals
Li YiFan, Head of Dairy in Asia, reported substantial growth in China’s dairy production, driven by government-backed large-scale farms. China aims to achieve 41 million metric tons of raw milk by 2025, bolstered by feed cost reductions and integrated dairy operations. However, Southeast Asia’s hot climate and market fragmentation hinder self-sufficiency. As the region continues to rely on imports, achieving local self-sufficiency remains a long-term challenge.
India: Dairy Commercialization and Economic Barriers to Nutrition
In India, where women play a central role in animal husbandry, the dairy sector is rapidly commercializing. Associate Professor Sudha Narayana emphasized the significant shift toward crossbred cattle and increasing productivity. However, rising production costs and milk prices have placed a healthy diet out of reach for many Indians, with over half of the population unable to afford nutritionally rich foods.
The global dairy industry faces an intricate web of climate challenges, regulatory pressures, and market shifts. Collaborative efforts, climate resilience strategies, and policy support will be essential to secure a sustainable future for dairy production, ensuring the industry meets the demands of a growing global population.
Marcelo Carvalho, CEO of Brazil’s MilkPoint Ventures, highlighted South America’s evolving dairy landscape, with Brazil alone contributing over half of the continent’s milk supply. Over the past decade, dairy production has increasingly shifted toward larger operations, though the average farm output remains modest. Climate variability—driven by phenomena like La Niña and El Niño and exacerbated by extreme weather events—continues to challenge stable production levels. This year’s severe flooding in Brazil underscores the urgency for resilient agricultural strategies to stabilize the region’s dairy sector.
North America: Climate Adaptation and Regional Growth
Cornell University’s Dr. Andrew Novakovic presented data showing North America’s strong per capita dairy production growth, second only to Asia. However, shifting climates may influence regional production, with warmer patterns expected to benefit Canadian regions like the Maritimes while altering conditions in the southeastern United States and California’s Central Valley. Despite these shifts, North America’s reliable rainfall could provide a strategic advantage, particularly in eastern regions, reinforcing the sector’s resilience against climatic impacts.
Australia and New Zealand: Focus on High-Value Dairy and Climate Response
Joanne Bills, Global Insights Director at Ever.Ag Insights, outlined similarities between Australia and New Zealand’s dairy strategies, both focusing on high-value products like cheese for domestic and export markets. Climate challenges pose significant concerns, with both nations facing reduced water availability and increasing greenhouse gas (GHG) pressures. In New Zealand, regulatory changes and community demands are accelerating the shift toward sustainable practices, while in Australia, climate impacts intensify as government intervention remains limited.
European Union: Competitive Pressures and Sustainability Struggles
Milica Kocic fr om IFCN Ag pointed to Europe’s constrained milk supply, wh ere higher land competition and input costs challenge profitability. Rising operational expenses and outdated practices are pushing smaller European farms, particularly those with fewer than 100 cows, out of business. As policy uncertainty looms, European dairy leaders emphasize the need for cost-effective regulations to sustain the sector’s competitiveness amidst sustainability pressures.
Africa: Overcoming Productivity Hurdles and Investment Gaps
Africa’s dairy sector, though promising, represents only 5% of global milk production. Bio Goura Soule of PAOLOA emphasized Africa’s reliance on imports, a reflection of local production challenges like high feed costs and inadequate infrastructure. The Economic Community of West African States (ECOWAS) aims to double milk production by 2030, a target seen as crucial to reducing dependency on imports and strengthening the local industry.
Asia: Large-Scale Expansion and Self-Sufficiency Goals
Li YiFan, Head of Dairy in Asia, reported substantial growth in China’s dairy production, driven by government-backed large-scale farms. China aims to achieve 41 million metric tons of raw milk by 2025, bolstered by feed cost reductions and integrated dairy operations. However, Southeast Asia’s hot climate and market fragmentation hinder self-sufficiency. As the region continues to rely on imports, achieving local self-sufficiency remains a long-term challenge.
India: Dairy Commercialization and Economic Barriers to Nutrition
In India, where women play a central role in animal husbandry, the dairy sector is rapidly commercializing. Associate Professor Sudha Narayana emphasized the significant shift toward crossbred cattle and increasing productivity. However, rising production costs and milk prices have placed a healthy diet out of reach for many Indians, with over half of the population unable to afford nutritionally rich foods.
The global dairy industry faces an intricate web of climate challenges, regulatory pressures, and market shifts. Collaborative efforts, climate resilience strategies, and policy support will be essential to secure a sustainable future for dairy production, ensuring the industry meets the demands of a growing global population.
