Fonterra believes that the world will soon begin struggling to produce enough milk to meet the ever increasing global demand for dairy.  

A new Reserve Bank report states that Fonterra estimates world milk production can only grow at 2 to 3 percent annually – that includes increasing production in non-dairying regions.

This will barely be enough extra supply to keep up with consumption growth the Reserve Bank claims. 

The report also states that agricultural commodity prices are currently experiencing their biggest boom in more than a century, and suggests the food supply-demand equation may have permanently changed.

Agricultural inventory stocks are currently at record lows while unstoppable social progress in Asia means millions more consumers are looking for more nutritional, higher protein, food sources every year.