India to Drive Over Half of Global Milk Production Growth

The OECD-FAO Agricultural Outlook for 2025-2034 has highlighted significant trends in the global dairy industry. According to the report, global milk production is expected to increase by approximately 2% annually over the next ten years. Notably, India is anticipated to contribute to more than half of this growth. This surge is primarily attributed to enhancements in milk yield per animal rather than an increase in the dairy herd size.

In terms of consumption, Asia is set to lead the global demand for dairy products, with India and Pakistan at the forefront. The report forecasts a particularly strong rise in the consumption of fresh dairy products in these countries. Conversely, in regions such as Europe and the United States, the growth in dairy consumption is expected to be more subdued, with cheese being the primary driver in developed markets.

The international dairy trade is projected to remain stable, with three main blocs—the European Union, New Zealand, and the United States—continuing to dominate exports. These regions are expected to account for around 70% of global dairy trade over the next decade, despite only moderate growth in production.

Environmental concerns play a crucial role in shaping the future of the dairy sector, as highlighted by the report. Increasingly stringent environmental regulations are pushing for reductions in greenhouse gas emissions and nitrogen pollution, leading to significant changes in production systems. These changes are particularly pronounced in high-income countries.

The report was released by the OECD and FAO as part of their Agricultural Outlook for 2026-2035, providing insights into the future dynamics of the global dairy industry.