Strategic issues facing the european dairy industry post 1992

Extract

Much has been written about the changing structure of dairy farming in Europe in the last decade, but comparatively little has been said about the processing sector. Yet the future market for milk largely depends on the success of the dairy trade in adapting to the new market environment. Accordingly, this paper concentrates on the pressures and strategic issues facing the milk processing sector in Europe. Certainly, in recent years it has had to cope with radical changes in both the production and consumption of dairy products. After several decades of uncontrolled expansion in milk production, the introduction of milk quotas by the European Community in 1984 was a rude shock. In general, the industry was still geared to an expanding milk market. Almost overnight, it was faced with the problem of excess processing capacity.