US report allays China milk glut fears

Fears of a five-year global milk glut have been allayed by a report that Chinese dairy import demand will continue at strong levels.

The Goldman Sachs multinational investment banking firm recently estimated that global output of raw milk will outstrip production by 1.8 million tonnes, or 2 billion litres, per year for the next five years.

Demand growth of only 2% was predicted, compared to raw milk production growth of 2.6% per year.