World dairy production is expected to reach 178m tonnes by 2026, with the majority of this increase (77%) being driven by developing countries. India and Pakistan are expected to be the biggest contributors of this growth, with 29% of total milk production coming from both neighbouring states.

On a global level, whole milk powder (WMP) is increasing by 1.9% per annum, skimmed milk powder is increasing by 2.5% and butter production is rising by 2% a year. Cheese production is also on the rise with estimates of a 1.4% growth a year.

In terms of process, cheese is expected to rise by 38% come 2026. SMP and WMP is expected to rise by 76% and 60% respectively by 2026.

Internationally, in 2016, butter and WMP were major drivers in the increased dairy prices. From January to December 2016, butter and WMP increased by 40% and 56%, respectively.

Meat

Meat production is also expected to rise come 2026, with a forecasted increase of 13% cited relative to 2016 figures. Again, developing countries are expected to drive the increase with a more intensive use of feed in the production process.

In 2016, overall meat production increased by only 1% to 317m tonnes, with growth in America and Europe negated by reduced output in China and Australia.

In 2016, trade increased for pigmeat by 9%, poultry meat by 5% and bovine meat by an estimated 3%. Sheepmeat saw reduced trade of 3%.

In terms of consumption, by 2026 it is expected that it will increase by 1.5% driven by the population growth. This will mainly consist of poultry as pig meat is expected to see a decline.

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World milk production to increase 22% by 2026 - OECD report

World milk production is forecast to increase by over a fifth and meat production by 13% by 2026, according to the most recent OECD agricultural outlook report.