IDF World Dairy Summit 2016 - Day 1

Published 18 October 16

The aim of IDF World Dairy Summit 2016 is to make a difference by facilitating dialogue with stakeholders of the global dairy sector, including views from outside, on how dairy can sustainably contribute to feeding 9 billion people.

AHDB Dairy’s Izak van Heerden, David Cotton and Chris James are at the conference this week. 

Day 1 - Highlights and take home messages

An emphasis was put on the importance of a circular dairy economy i.e it needs to be good for everyone and externally focus on market, consumers and lifestyle nutrition.  

The opening key note address by Gerda Verburg, United Nations Assistant Secretary General and Coordinator of Scaling Up Nutrition (SUN) Movement challenged the whole dairy industry that ‘Business as usual will lead to everyone’s demise’ and particularly focussed on nutrition in poorer communities.

• Collaboration is needed between whole chains to ensure the survival of all.
• Nutrition in the first 1000 days i.e. pregnancy to second birthday is what determine health and mental development and everyone has a duty to ensure this is sufficient throughout the world.  ‘Healthy children lead to healthy communities leads to healthy, prosperous countries’.

In the Leaders Forum  Dare to dairy! Leaders from various links in the dairy chain addressed the question ‘How dairy will sustainably contribute to feeding 9 billion people’ posing the following provocative statements to start dialogue:

• Only Government can guarantee the future of the dairy sector
• In order to feed the 9 billion we should do everything that is technologically possible
• Science has to reclaim its authority as the thought leader within the food domain
• International Governmental Organizations need to be fully integrated in the development process of the dairy sector

The IDF Forum showcased the value and positive outcomes that IDF generates for the global dairy sector.

• This year’s Forum focused specifically on developments in four areas of strategic importance to the sector: harmonization of global standards, dairy safety and quality, sustainability and nutrition
• IDF is a leader in global harmonisation of standards to protect consumer health and facilitate dairy trade.

The final session of the day Dairy in the World – Present and future, chaired by Gilles Froment, Parmalat Canada had presentations on IDF World Dairy Situation Report and the IDF Global Marketing Trends (GMT) survey, Véronique Pilet, and Noëlle Paolo, both CNIEL, France and the Outlook and future trends in the dairy sector, Christophe Lafougère, GIRA, France.

• 2014-15 saw a 2% growth in world dairy production. Asia and Europe are the two largest producers of milk, with massive growth in India but most of this is just being used internally.
• The 4 largest dairy companies in the world by turnover are Lactaid, Nestle, Fonterra and Dairy Farmers of America.
• 9% of global production is traded on the world market.
• Growth in demand has come from a 10 kg increase in consumption per capita over 10 years as well as population growth. Neither of these factors look like reducing (7.3 billion people, Ave. per capita consumption of dairy is 111.3 kg)
• The dairy market drivers are health, convenience, taste, quality, naturalness and pleasure
• Generally global market trends show increased demand for cheese yogurt and butter but a reduced demand for drinking milk. In 2015 worldwide there were 16,000 new products launched, 6,000 new cheeses, 4,500 new yogurts
• Volatility is here to stay. Reasons for current crisis
• China consumption is down. It had grown 500kt over five years only to loose 320kt since 2013. However, they are getting exposed to more cheese but, are taking steps to control their own supply chain by processing milk in other countries such as France and New Zealand
• Russian embargo. This market has already been replaced. Essentially that market shock is behind us.
• Oil price fall. This affects sales in oil producing nations such as Nigeria and Saudi. However commodity prices are now rising despite low oil prices.
• End of EU quotas. EU growth has now slowed: 1% in 2016 and 0.8% in 2017.
• In conclusion, demand will outstrip supply growth, fats are revaluing upwards, there will be more volatility, China will vertically consolidate, the world is getting back to expected trends. Read more...

Read summaries from the whole conference on the IDF World Summit 2016 website here.