COPENHAGEN - Arla Foods, one of Europe's biggest dairy companies, said on Wednesday it expected to increase milk production by 18 percent over the next five years.
The company said its 12,700 farmer owners would lift milk production by 2.5 billion kilos by 2020 from the 14 billion kilos currently produced.
Global milk prices, depressed by oversupply, are expected to pick up in early 2016, partly because supply in China will ease.
"We are waiting for China to bring down its stocks and we expect lower growth in supply from some countries outside Europe," Chief Executive Peder Tuborgh told Reuters in August.
In November, global dairy prices stabilised after falling for three consecutive auctions, providing some relief for struggling farmers, but analysts warned recovery would likely be slow.
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Arla has a strong position in Northern Europe and the Middle East, and has also begun to build a business in markets such as China, sub-Saharan Africa and Russia.
