IFCN predicts a decline in global milk production in 2021
Analysts note that against the background of rising feed prices, the price of milk in 2021, after a slight decrease to $ 33 per 100 kg, will rise to $ 35. IFCN noted the recovery in GDP growth, which stimulates demand to be another factor determining this increase. In 2020, demand for dairy products increased by 2.2%, per capita consumption increased by 1.4% - this was largely due to the growth of the population by 0.8%.
As for milk production, analysts say that the high level of feed prices, which last year was due to a decrease in the harvest in many countries, as well as a drop in profits for farmers, can adversely affect milk production. This is despite the fact that in 2020, the industry did not fully feel the impact of the crisis caused by the coronavirus pandemic.
This influence can play a key role in 2021, and the further development of the industry will largely depend on the epidemiological situation in the world. Experts predict serious fluctuations in milk prices depending on demand and purchasing power of the population.
However, now, analysts note that it is difficult to predict the demand for dairy products in the current year as it is affected by the unstable epidemiological, political and economic situation in the world. According to experts, the situation with prices on the dairy market in 2021 will be determined depending on how consumption and demand will develop.