The EU dairy industry can be characterised as innovative and a global player, but it is losing market share since the world market is growing faster than European exports. The improvement in labour productivity and the growth in value added compensate for the loss in market share. Companies in the EU innovate mostly on products and less in marketing, organisation and process. Product innovations are mostly done on varieties, but also very important are innovations on new ingredients (in functional foods). SMEs as well as large companies, including the packaging and ingredients industry, all contribute to innovation. In the large majority of countries labour productivity has improved.
The EU dairy industry is very dominant in the world market and the export value is increasing, but the world market grew faster last year than the EU could meet. New Zealand profits most from the increasing world market demand. These conclusions are found in a study that LEI Wageningen has carried out for the European Commission DG Enterprise and Industry.
This report is, together with Administrative burdens in de the European food industry, part of the report Food legislation and competitiveness in the EU food industry; Case studies in the dairy industry.
Report 2009-011 Competitiveness of the EU dairy industry