milk exports Archives

The global market for organic milk was estimated by Fact.MR to be worth US$ 159.75 million in 2022, with a 5% compound annual growth rate (CAGR) in demand from 2018 to 2022. Based on the most recent estimates, the market is expected to grow at a compound annual growth rate (CAGR) of 6.5% and reach a valuation of US$ 319.36 million by the end of 2033.

The surge in the sales of organic milk can be attributed to the burgeoning global demand for a diverse range of organic food products. This market is expected to thrive due to the escalating incidence of health issues such as diabetes, obesity, heart-related conditions, hypertension, and other health concerns.

Consumers perceive dairy products sourced from cows fed on organic or natural diets as superior in quality. This perception has led to a notable surge in the demand for milk that aligns with an organic and wholesome lifestyle. Such organic milk varieties are rich in essential nutrients that play a pivotal role in promoting and sustaining a healthy way of life.

Key Driving Forces Accelerating the Market Growth

· Consumers are becoming more health-conscious and seeking natural, organic, and healthier alternatives to conventional products. Organic milk is perceived as a healthier option due to the absence of synthetic pesticides, antibiotics, and hormones.

· Growing concerns about the environmental impact of conventional dairy farming practices, such as the use of chemical fertilizers and pesticides, have led consumers to opt for organic milk, which is produced using sustainable and environmentally friendly methods.

o United States market growth rate is expected to witness a 7% CAGR during the forecast period and reach US $ 90.06 Mn by 2033-end.

· There is a rising awareness of animal welfare issues, and consumers are choosing organic milk because organic dairy farms generally adhere to higher animal welfare standards.

· Government regulations and certifications for organic products provide assurance to consumers about the authenticity and quality of organic milk, fostering its growth. Moreover, the increasing availability of organic milk in various retail channels, including supermarkets, specialty stores, and online platforms, has made it more accessible to consumers.

Vital indicators shaping the future of the industry

· Changes in consumer preferences and behavior, such as increased demand for natural, organic, and sustainable products, will continue to drive the growth of the organic milk market in North America.

· Any changes in government regulations and organic certifications can impact the production, distribution, and marketing of organic milk, affecting consumer trust and market growth.

· The level of market penetration and the awareness of organic milk among consumers will significantly influence its future growth. Increased awareness through marketing and education campaigns can drive market expansion.

· The availability of organic milk in various retail channels, including supermarkets, specialty stores, and online platforms, will determine its accessibility and potential for growth.

· The level of competition in the organic milk market, including the presence of major dairy companies and smaller organic dairy farms, will affect pricing, product innovation, and market share dynamics.

Key Companies Profiled in This Report

· Danone

· Fonterra Co-Operative Group Limited

· Groupe Lactalis S.A.

· Dairy Farmers of America Inc.

· Arla Foods AmbA

· Agropour Dairy Co-Operative

· The Kroger Company

· Organic Valley Co-Operative

· Clover Stornetta Farms Inc.

· Stratus Family Creamery Inc.

Challenges hindering the market growth

· Organic dairy farming involves more expensive production practices, such as organic feed, higher labor costs, and reduced herd sizes, leading to higher production costs. This often translates into higher retail prices for organic milk compared to conventional milk.

· The transition of conventional dairy farms to organic practices takes time, and there may not be enough supply to meet the growing demand for organic milk. Limited supply can lead to supply shortages and price fluctuations.

· Consumers may perceive the price premium of organic milk as too high, leading them to choose conventional milk, especially during economic downturns.

· The organic milk market faces competition from conventional milk and plant-based milk alternatives, such as almond, soy, and oat milk, which can limit the market share of organic milk.

How competition influences the market

Organic milk producers have been focusing on product differentiation to stand out in a crowded market. This can lead to the introduction of various product offerings, such as flavored organic milk, organic milk-based beverages, and specialty formulations, catering to different consumer preferences and needs.

· In 2021, Lactalis Group acquired Leerdammer and Shostka, which is expected to help Lactalis Group develop quality and reputable local products.

Segmentation of Organic Milk Industry Research Report

· By Product Type:

o Skimmed

o Whole

o Partly Skimmed

· By Source:

o Cow

o Buffalo

· By Packaging Type:

o Pouches

o Cans

o Bottles

o Tetra Packs

o Bulk Packs

· By Flavor:

o Non-flavored

o Flavored

· By Distribution Channel:

o HoReCa (Hotels, Restaurants, & Catering)

o Specialty Stores

o Modern Trade

o Convenience Stores

o e-Retailers

· By Pasteurization Type:

o High-Temperature, Short-Time (HTST) Method

o Ultra-pasteurization (UP)

o Vat Pasteurization

· By Region:

o North America

o Europe

o Asia Pacific

o Latin America

o Middle East & Africa

IndexBox has just published a new report: ‘U.S. – Milk – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

USDA forecasts that milk production in the U.S. will rise by 2.1% in 2021 thanks to gains in yield per cow as well as a slight increase in the number of milk cows. The average yearly price received by farmers for cow milk in 2021 is predicted to grow by 3.9% y-o-y amidst a rally in prices for animal feed. Rising consumer demand for cheese and butter continues to drive the market on the backdrop of lower demand for beverage milk. Demand in Asia for imported dairy products features as another factor boosting milk processing in the U.S.

Key Trends and Insights

According to IndexBox, in 2020, U.S. milk production increased by 1.3% y-o-y to 100M tonnes, and it is forecast to rise at the same pace for the next two years due to demand from the growing population.

The average number of milk cows in the U.S. rose from 9,337 heads in 2019 to 9,388 heads in 2020 but remains below the 2017-2018 figures. In the second half of 2021 and into 2022, farmers are expected to accelerate the pace of butchering and decrease the total head of cattle as they respond to higher costs of feed resulting from summer droughts. The expected decline in milk due to fewer cattle should be offset by increased milk production per cow.

The USDA estimates that as of year-end 2021, the average yearly farmer’s price will grow by 3.9% y-o-y to $0.43 per liter due to rallying feed prices. In 2022, the cost of milk should fall by 2.4% in comparison with 2021 to $0.42 per liter thanks to the expected increase in production but will remain higher than the 2020 figures ($0.41 per liter).

Over the last decade, the per capita milk consumption in the U.S., incl. both fresh milk of all kinds and milk used for processing, grew by 6.7% and in 2020 reached 354 kg/person, but the structure of the demand has been changing. Americans continue drinking less milk while consuming more cheese and butter. This long-term shift towards processed dairy products will drive market growth for milk in the mid-term. In Asia, imported produce is becoming highly sought after and this should expand exports of American cheese and other dairy products, while additionally driving demand for milk.

U.S. Milk Production

In 2020, approx. 118M tonnes of milk were produced in the U.S.; picking up by 1.6% compared with 2019 figures. The total output volume increased at an average annual rate of +1.3% from 2012 to 2020; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2014 when the production volume increased by 2.7% year-to-year. Milk production peaked in 2020 and is expected to retain growth in the immediate term.

In value terms, milk production expanded significantly to $127.8B in 2020. The total output value increased at an average annual rate of +4.4% over the period from 2012 to 2020; the trend pattern indicated some noticeable fluctuations being recorded in certain years. Milk production peaked at $130.4B in 2017; however, from 2018 to 2020, production remained at a lower figure.

U.S. Milk Imports

For the third consecutive year, the U.S. recorded growth in purchases abroad of milk, which increased by 7.2% to 19K tonnes in 2020. Overall, imports recorded buoyant growth. The pace of growth appeared the most rapid in 2016 when imports increased by 51% against the previous year. Over the period under review, imports hit record highs in 2020 and are expected to retain growth in years to come (IndexBox estimates).

In value terms, milk imports dropped rapidly to $22M in 2020. Overall, imports posted a strong increase. The pace of growth appeared the most rapid in 2018 when imports increased by 24% year-to-year. As a result, imports reached a peak of $30M. from 2019 to 2020, the growth of imports remained at a lower figure.

In 2020, whole fresh milk (31K tonnes) constituted the largest type of milk supplied to the U.S., with a 68% share of total imports. Moreover, whole fresh milk exceeded the figures recorded for the second-largest type, skim milk of cows (14K tonnes), twofold.

Canada (25K tonnes), Mexico (16K tonnes) and New Zealand (818 tonnes) were the main suppliers of milk imports to the U.S. In value terms, Mexico ($35M), Canada ($25M) and New Zealand ($1.9M) appeared to be the largest milk suppliers to the U.S.

In 2020, the average milk import price amounted to $1,157 per tonne, waning by -21.3% against the previous year. There were significant differences in the average prices amongst the major supplying countries. In 2020, the country with the highest price was New Zealand ($2,270 per tonne), while the price for Canada ($997 per tonne) was amongst the lowest.

Source: IndexBox Platform

Global Organic Milk Industry is expected to reach US$ 319.36 Million By 2033

Key Trends and Insights

U.S. Milk Production

U.S. Milk Imports

most viewed today