Trend attributed to more positive health assessment of dairy fat, change in taste.
Consumers’ preferences are influenced by the science on dairy fat and its impact on a healthy diet, the Organization for Economic Co-operation and Development and the United Nations Food and Agriculture Organization (OECD-FAO) reported in its newly released “Agricultural Outlook 2018-2027.”
Welcoming the report, International Dairy Federation (IDF) director general Caroline Emond said the OECD-FAO outlook provides useful market data and analyses. The report is complementary to the “World Dairy Situation Report” published annually by IDF.
The OECD-FAO report recognizes that the price of butter will remain higher “due to structural changes in demand for milk fat solids.” It forecasts that global demand for butter is expected to grow at nearly 2.2% annually.
The joint publication predicts that consumers in developed countries will consume an additional 0.3kg of butter in 2027 due to preferences shifting in favor of butter over other oils and fats.
“Recent studies that have shed a more positive light on the health implication of dairy fat consumption, as well as consumers’ preference for taste and less processed food, have encouraged its use in bakery products and recipes,” the report noted.
This move is heartening, according to Emond, as emerging science has indicated that consuming dairy foods, such as milk, yogurt and cheese as part of a healthy balanced eating pattern, can support health.
While per capita consumption of many commodities is expected to remain flat globally, the OECD and FAO project shows that dairy consumption is one rare exception and is set to expand faster than population growth in the coming decade.
IDF shares the acknowledgement by the OECD-FAO on the role of trade in ensuring food security. The IDF collaborates actively with Codex Alimentarius and ISO to facilitate the trade of safe products through the harmonization of standards.
The OECD-FAO report recognizes that a significant portion of growth in dairy production and demand will come from Asia (with India and Pakistan accounting for the highest increase). The World Dairy Summit to be held in Daejeon, South Korea, in October will address the rise in production and consumption of milk and dairy products in Asia. Strong participation is expected from IDF members in South Korea, China, Japan, India, as well as other countries worldwide.