The Dairy Sector

Abstract

Milk production in OECD countries raises a number of policy challenges when viewed in terms of the economic, environmental and social dimensions of sustainable agriculture. While per capita milk consumption is relatively stable in most OECD countries, consumption is expected to increase strongly in non OECD countries. OECD countries account for over 80% of world exports. The high level of support provided to milk production in most OECD countries suggests that significant adjustments may occur within OECD countries as a result of further trade liberalisation. At the same time, the environmental consequences of dairy farming are of increasing public concern.