Growth in global dairy markets will continue despite the severe issues the industry is currently facing.
The claims were made during the European Dairy Association (EDA) Annual Congress in Edinburgh, as Kevin Bellamy, dairy analyst at Rabobank, outlined his thoughts on the global dairy sector going forward.
He told attendees dairy markets were currently oversupplied, but pointed to a bright future of continuing global growth.
He said: “There is clearly too much milk on the world market and leading dairy countries, such as New Zealand, have been facing extremely challenging conditions. Emerging markets should provide the opportunity for more balanced growth on the international market.”
Speaking about the global influences on the dairy trade, Mr Bellamy said changing conditions in the country could lead to 1 billion less litres of surplus milk on the global market.
“Demand for dairy will expand, particularly driven by emerging markets, and this will result in more target destinations for companies.
"There will be plenty of opportunities for dairy built primarily on population growth and per capita consumption," Mr Bellamy added.
The conference also saw Dairy UK chairman David Dobbin outline the need for an ’economically sustainable growth strategy’ for the industry.
He called on the sector to focus on growing added value sales to domestic and export markets. He also called for increased dairy promotion to the public.
"The fundamental cause of the adverse dairy markets of the last year was over-production with the growth in global milk production overtaking demand," he said.
"However, our members are optimistic, not pessimistic, about their future. We are acutely aware of the challenges we need to overcome to succeed.
"We must develop an economically sustainable growth strategy, market led and focusing on growing in value not just volume."
Joost Korte, deputy director general for agricultural and rural development at the European Commission underlined Mr Dobbin’s comments, claiming there needed to be global strategies in health, naturalness and sustainability for future industry success.
"The future of dairy can be promising if we take the right actions now", he said.