Demand for whey protein is currently growing at approximately 4% per year, totally outperforming other dairy products on global markets.
This was one of the key messages delivered by GIRA managing director, Christophe Lafougere to a recent conference hosted by the Dairy Council Northern Ireland.
His organisation delivers strategic market consultancy and forecasting at every level of the European food supply chain.
The GIRA representative also confirmed that demand for cheese is expected to remain strong over the coming years.
He further explained, “This is a win-win for dairy as both cheese and whey are produced as part of the same processing operation.
“In contrast, demand for infant formula will decline over the coming years. In part, this is due to the falling birth rate in China.”
Lafougere attributed the growth in whey sales to the growing demand for high-quality protein across the world.
He said, “This is very apparent in the United States at the present time particularly amongst younger consumer groups. And no doubt, this trend will start to impact here in Europe in the not too distant future apart.”
Lafougere projected a pretty stagnant trend in international milk production trends everywhere except India over the coming five years.
Tightening environmental standards in countries like New Zealand and across many parts of Europe will be key drivers in this regard.
Over the coming years reductions in dairy cow numbers will become a reality in certain EU member states, as well as the introduction of carbon taxes directed at dairy farmers in countries like Denmark.
“All of this is adding to the cost of milk production at farm level. For their part, processers will have no option but to pass these increases on to retailers and, eventually, to consumers,” Lafougere said.
“But the world needs more milk,” he stressed.
“The global population continues to increase and the demand for high-quality dairy proteins will grow in response to this trend.”
The GIRA representative foresaw the option of farmers seeking to achieve more milk per cow as a way of meeting future demand trends within the international dairy sector.
He specifically highlighted Southeast Asia as a key dairy market now and into the future. The region has a growing indigenous population but with no dairy production sector on its doorstep.
