A time for milk expansion

WITHOUT EUROPEAN milk, processors predict shortages, as emerging markets and oil-rich nations drive up demand, and agricultural reforms in the EU hold down the supply.

Australia can’t fill the gap, because of its worst drought in a century, and New Zealand can increase output by only 1%.

It is a time of opportunity for European dairy farmers and milk processors, but they’ll have to wait a month before any expansion, in case EU trade commissioner Peter Mandelson sabotages their plans.