CHAPEL HILL, N.C. – According to speakers at the INTL
FCStone Dairy Outlook Conference held last month in Chicago, dairy prices will
remain volatile for the near future, the result of global weather, supply
issues in the feed markets and rising demand from developing countries, QSR
Magazine reports.
“We’re seeing milk production increase in the U.S. with
fewer cows and we’re estimating total U.S. production reaching nearly 201
billion pounds in 2013,” said Robert Chesler, vice president of FCStone LLC’s
Food Division.
“But keep in mind that water remains the greatest threat to
growing dairy production and those developing countries need to solve some of
their infrastructure issues before realizing those gains,” Chesler said.
“This
forecast calls for a growth rate of 1.8% per annum, well below the 2.3% growth
rate of the previous decade resulting in higher prices. Consumption will
increase at an average of 2.1% per annum based on robust international income
growth, population growth, and further westernization of diets.”