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DAIRY COMMODITIES - MARKET INTELLIGENCE Q3 2025

Cost-Effective Protein Solutions

On the protein front, we observe growing interest in replacing casein with whey-based proteins to cut costs. In some applications, substituting SMP with whey or permeate offers considerable savings, especially where high protein content is not essential, and functionality as a filler is more relevant.

Outlook for Dairy in MENA & global markets according to forecasts:

  • MENA Dairy Market Volume is expected to grow at a CAGR of +1.3% from 2024 to 2035, reaching 85 MT.
  • Market Value will grow at +2.0% CAGR, hitting $102.8B by 2035.1
  • Global Dairy Market Volume is set to grow at +1.2% CAGR, reaching 1,380 MT by 2035.
  • Global Market Value will increase at +1.8% CAGR, expected to reach $1,475.9B by the end of 2035.

 

Source 1: https://www.indexbox.io/blog/dairy-produce-world-market-overview-2024-8/

Looking ahead to the rest of 2025:

Milk production is projected to stay stable, with small gains in New Zealand, the US, and Australia.The EU may see a slight decline, while Argentina is expected to rebound by 4.7% after last year’s climate-induced downturn.

China continues to import less due to rising self-sufficiency and a shift toward higher-value, high-protein dairy products. Meanwhile, growing demand from other regions is sustaining global trade flows.

2026 US Outlook

US Milk production in 2026 is forecasted to increase from 2025, driven by an expanding milk cow herd and slightly higher milk per cow. Commercial exports are forecasted to be lower than in 2025 on a fat basis, but higher on a skim-solids basis due to additional exports of whey products. Dairy product prices are forecasted to be lower for butter, non-fat dry milk (NDM), cheese, and whey, compared with 2025, primarily due to increased milk supplies. 2

FSL’s Commitment

FSL is working on diversifying our supply base adding new producers from Europe, US and South America, taking into consideration currency volatility, seasonality and local knowledge in order to bring our customers solutions, which are optimal from both the cost and quality points of view.

Even though the prices have seen a steady increase in the last few years, we hope that the situation is not as daring as it was back in 1869 when Napoleon the Third had initiated the creation of a previously unheard of butter substitute: margarine. Did you know that the first margarine, consisting of beef tallow churned with milk, was patented in 1869 by Hippolyte Mèges-Mouries?

Let Us Talk Dairy

Looking for competitive offers on fats, proteins or customised dairy blends? Contact our team at dairy@foodspecialities.com.We are here to help you navigate today’s complex market with practical, reliable and cost-effective solutions.

Source 2:WASDE report, 12 May 2025

 

Applications:

Sausages, hams, bacon (chicken, beef & turkey) and deli meats are processed through atomising, drenching, injection, tumbling, or brine systems.

In practice, this technology has proven particularly beneficial for high-volume sausage and deli manufacturers, where maintaining production continuity and consistency of output are crucial. By combining sensory excellence with measurable efficiency, quality consistency and scalability, STO directly supports profitability while helping manufacturers future-proof their operations against rising costs and tightening ESG requirements.

To discover how FSL’s meat ingredient solutions can enhance your formulations and operations, reach out to our experts at meatfsl@foodspecialities.com.