As the dairy industry evolves, companies across the U.S. are looking to capitalize on increasing milk production through international joint ventures.
A new report from CoBank says that while the U.S. has heavily invested in milk production, Europe and other regions that faced production constraints focused their effort and investment on technology for the processing sector. And, in 2017, many U.S. dairy companies and international partners collaborated to capitalize on each other’s strengths. CoBank says many cooperatives lack the available capital to take on new and costly processing facilities, noting that a cheese manufacturing plant can cost between $300-500 million, while many international processors see the possibility of diversifying their offerings both in the U.S. and globally.
A Cobank researcher says: “The international dairy industry sees the U.S. milk supply as strong and reliable and they see opportunity in the U.S. consumer.”
From the National Association of Farm Broadcasting News Service.