A new study analyses the opportunities for the dairy industry to counter rising costs [and falling raw material volumes] by investing in plant-based and fermented milk alternatives. The study, entitled ‘The 2040 EU Sustainable Dairy Landscape: Corporate Transition in Traditional and Animal-Free Dairy’, which was written by the consultancy Bright Green Partners, concludes that the cost of milk production in the EU is expected to rise by 30% by 2040.
At the same time, Rabobank has predicted a 20% decline in traditional milk production in north-west Europe by the same year. According to the study, plant-based milk substitutes could be 10% cheaper than cow’s milk by 2040. This will be the result of expected government action to reduce the environmental impact of the dairy industry, according to the report.
Bright Green Partners recommends that manufacturers invest in improving the flavour and nutritional value of dairy alternatives. It also highlights the potential of milk alternatives produced through precision fermentation. The cost of precision fermentation is expected to fall as innovations are introduced and production scales up.
To conclude the report, Bright Green Partners points to two main adaptation opportunities available to the dairy industry: reducing environmental impact and utilising existing infrastructure to develop plant-based and fermentation products.
‘Dairy companies need to utilise their industry knowledge and existing supply chains to position themselves as winners in the growing market for alternative dairy products,’ says Breewood. ‘The dairy sector as we know it will change in the coming years, and plant-based dairy [imitations] and precision fermentation will play a crucial role in a more sustainable dairy industry. There is huge potential for the companies that choose to innovate and invest now – while those that don’t act risk being left behind.’
Photo: Omya
