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Mootropolis, Canada
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Dairy prices hit a wall of consumer resistance. In a move that defies logic, the dairy industry has been steadily increasing the price of milk for years - even though demand for their products has been falling. Since 1994, dairy prices have skyrocketed by 55 per cent, even though per capita milk consumption has been flat or falling every year since 1980. No other industry responds to falling demand by increasing their prices! To make matters worse, Canadian dairy prices are far above world levels and far higher than they need to be to ensure a fair return to efficient dairy producers. |
Consumers can now choose from a number of affordably priced, competitive products such as soy
beverages and calcium-fortified orange juice. A combination of high dairy prices, a growing array
of alternative products, and changing demographics, means the decline in dairy consumption is a
long-term trend that is expected to continue well into the future.
 At the same time, world demand for dairy products is growing, and the trend is expected to heat up in the coming years. But the Canadian dairy industry has chosen to take a pass on these international markets in favour of the declining domestic market. Clearly, the dairy industry needs a new strategy. World Fluid Milk Consumption - forecast World Butter Consumption - forecast World Cheese Consumption - forecast World Manufacturing Demand for Milk - forecast World Dry Non-Fat Milk Consumption - forecast * To view a bigger version of a chart, click on the chart. |
Will Canadians