As the EU is a net exporter of dairy products, an ever present driving factor of the EU dairy
sector is the world market situation. Figure 5-8 shows the world price projections for dairy
products used in the analysis. The most notable feature of the projections is the contrast
between the prices achieved in the early part of the current decade and the price level in the
projection period. World prices for dairy products are projected to average over 1,000 US$
higher than in the reference period.