Have you noticed the recent increases in milk prices? Surprised? It seems as though the high milk prices are here to stay, according to Fonterra Cooperative Group Ltd., the world’s largest diary exporter.burcon blog
Written by Paul L.
On February 22, 2011
Have you noticed the recent increases in milk prices? Surprised? It seems as though the high milk prices are here to stay, according to Fonterra Cooperative Group Ltd., the world’s largest diary exporter.
“Whole-milk powder prices will likely remain at least 50 percent above their historical averages in the longer term,” says Chief Executive Officer, Andrew Ferrier in an interview today from Auckland.
The rise in milk and milk product prices are due in part by the emerging markets of the BRIC countries and in particularly, China. As more consumers earn more income and rise above subsistence level, there will be more demand for dairy and meat products. China is set to become the fastest growing food market in the world and China’s limited water, land and natural resources exacerbate their need for food supplies. Food prices soar to their all-time high last month, according to United Nations. Ferrier added that, “Higher prices are the new normal.”
With food prices at their all-time high and milk prices continuing to rise, both food processors and consumers are seeking a less costly alternative. Although consumers want more dairy and meat products, protein is invariably the product in demand and animal protein will always be more costly than plant protein. The high prices will unlikely sustain for long before an alternative protein source is found.
Did you know? Animal protein production, such as milk or whey proteins, requires significant amounts of our global supply of energy and natural resources and creates more greenhouse gas emissions than driving cars, according to United Nations Food and Agriculture Organization.
