June is Dairy Month, the perfect time to consider the future of milk. Fonterra’s Paul Campbell explored this very topic during the dairy session at Alltech’s recent Symposium. In his presentation, Campbell gave attendees an overview of his company, Fonterra, and its perspective on the present and future milk market.
Established in 2001, Fonterra is New Zealand’s largest farmer-owned, co-operative dairy company. According to Campbell, Fonterra knows that milk’s nutritional value is recognized worldwide, and the company is committed to providing consumers with hormone-free milk via safe practices across the food chain.
Fonterra’s milk market has expanded in recent years. According to Campbell, one large market has replaced a group of regional markets. Fifteen years ago, Fonterra’s market was predominately limited to Europe and South America. Today Fonterra’s exports travel to many areas of the world, including Africa and North America.
With the expected global population increase, growth of the milk market will likely continue into the future. Campbell explained that demand from nontraditional markets, such as East Asia and the Middle East, is expected to increase. China, India, and Africa should dominate growth through 2020. Despite increasing demand and growth in the market, Campbell said milk prices will probably remain volatile, due in part to the decline in stock values.
Besides discussing the growth of the milk market, Campbell also told attendees about other related trends. One of these trends, an emphasis on sustainability, is especially important to Fonterra. Campbell said that members of the dairy industry must work together to reduce waste and greenhouse gas emissions, increase transport efficiency, and educate farmers and suppliers. In addition to sustainability, other trends relating to the dairy industry include an increased emphasis on nutrition, vertical integration, community, and security and traceability.