Rising demand for dairy in the European Union is likely to see the bloc's dairy industry lose market share in several export markets over the next decade, a Commission report says.
The EU's market share of global butter exports is set to fall from 38 per cent in 2005 to 22 per cent in 2015, according to the latest MAP report from the European Commission.
The prediction reflects an anticipated rise in demand for added value dairy products at home in the EU.
Exports from the EU are also expected to drop for cheese, whole milk powder and skimmed milk powder, the report says.
There was more good news for dairy commodity prices, which are predicted to remain high in the near term following a recent boom worldwide.
Analysts working on the report doubled their projections for price rises over the next decade, after prices soared to record highs earlier this year.
Average prices are now expected to be around 40 per cent higher over the next decade, compared to the last one.
The global market for dairy products, however, will expand only moderately, the report says.
Emerging markets such as Russia, India and China are expected to play a big role, and Asia more generally already consumes half of the world's dairy products.
