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A Summary Of Milk Production Across The World

Wednesday, October 13, 2010

This article from the FAO looks at dairy production across the globe. It looks at the status of production in the country, development in national dairy sectors and detailed farm-level data.

Introduction

The country profiles provide an overview of a number of indicators illustrating the trends and drivers for milk supply and demand, and the dairy chain. The intention is to give each country’s dairy sector a ’face’. In all cases, it has been attempted to make the indicators comparable between the countries.

For the purpose of this analysis, ten developing countries were chosen as well as three developed dairy countries (Germany, New Zealand and USA) to put the developing countries analysed into a global context. The developing countries are Bangladesh, Cameroon, the People’s Republic of China (henceforth China), India, Morocco, Pakistan, Peru, Thailand, Uganda and Viet Nam. Comparable data were available because the IFCN is well established there.

India

With an annual production of 108 million tons of ECM, 65 per cent of which is produced by buffaloes, and a national herd of 113 million head of cattle/ buffaloes, India is the world’s largest milk-producing country. Some 75 million dairy farming households, with an average of 1.5 adult female cows or buffaloes per farm, are engaged in the sector each producing about 4 litres of milk per farm/day. During the period under review, production rose by 3 to 4 per cent per annum or approximately 4 million tons, thanks to higher milk yields and more cows and buffaloes.

The predominant dairy production systems may be classified as low-input/low-yield systems (956 litres/cow/year). Feeding is based mainly on crop residues such as straw and green fodder, supplemented by small quantities of lowcost compound feed. Milking is done by hand and the milk transported to village collection centres or collected by local milkmen. About 45 per cent of the milk is used by the farming households and only 15 to 20 per cent is delivered to formal milk processors.

Annual per capita milk consumption increased by 1.5 to 2.4 per cent per annum from 1990, reaching 98 kg in 2005.

Previously, rising demand for milk was mainly driven by population growth whereas increases in per capita consumption have now become an additional driver. India has always been 100 per cent self-sufficient in milk, with total imports/exports of only 0.3 million tons per annum; it may thus be considered as almost unconnected with the world dairy market.

Pakistan

With a production of 34.4 million tons of ECM, Pakistan was the world’s third largest producer of milk in 2005, with buffaloes accounting for 75 per cent of production. Milk is produced by approximately 15 million dairy farming households with an average of 1.8 adult cows or buffaloes per farm producing approximately 6.4 litres of milk per farm/day. Between 2000 and 2005, production grew by 2.9 per cent per annum, thanks more to increased numbers of milking animals than to higher milk yields.

Dairy production systems in Pakistan are similar to those in India. Most (50 per cent) of the milk is consumed by the farming households or sold on the informal market (40 per cent); less than 10 per cent is delivered to formal milk processors.

By 2005, yearly milk consumption in Pakistan had reached 230 kg per capita, significantly higher than in India. Increased demand for milk was mainly driven by population growth (from 2.0 to 2.2 per cent per annum). Like India, Pakistan has always been completely self-sufficient in milk, with imports/ exports of only 0.22 million tons per annum.

Bangladesh

Dairy production systems in Bangladesh are similar to those in India and Pakistan. However, milk production and yields (2.8 million tons ECM from cows and buffaloes, and 711 kg of ECM per cow/per day, respectively) are significantly lower than in India and Pakistan.

Most of the milk is consumed by farming households or sold on the informal market, and less than 20 per cent is delivered to formal milk processors. In 2005, per capita milk consumption stood at only 32 kg/year. Bangladesh is 85 per cent self-sufficient in milk and imports 0.4 million tons per annum.

Thailand

In 2005, Thailand produced 0.8 million tons of ECM, less than 1 per cent of that produced by India. Nevertheless, with an annual increase of 8.4 per cent, production has increased rapidly since 2000, mainly thanks to greater numbers of cows.

With an average of 20 cows per farm, Thailand’s dairy herds are significantly larger than those in Bangladesh, India and Pakistan. Moreover, the country’s dairy farming systems are more intensive than in other parts of South Asia owing to its development policy and high milk prices (about 30 to 40 per cent above those in India). Dairy production relies mostly on Holstein cows that have higher milk yields than the buffaloes or local cows used in Bangladesh, India and Pakistan. Milking is mainly done by machine and about 95 per cent of the milk is delivered to formal milk processors.

In 2005, yearly milk consumption stood at 21 kg per capita. Thanks to its substantially increased production, the country’s milk self-sufficiency increased from 33 per cent in 1996 to 47 per cent in 2005. Nevertheless, Thailand’s annual milk deficit stands at approximately 1 million tons.

Viet Nam

With a production level of 0.23 million tons of ECM in 2005, Viet Nam is the smallest milk producer of the Asian countries covered by the analysis. However, during the period under review, milk production grew by more than 20 per cent per annum, mainly driven by increasing milk yields that had reached 1.73 tons per cow/year by 2005.

On average, dairy farms in Viet Nam have 6.9 cows producing 32 litres of milk per farm/day. Production is mainly based on imported dairy cattle or crossbreds with local cattle. As in Thailand, about 95 per cent of Viet Nam’s milk is delivered to formal milk processors.

Per capita milk consumption increased from 4 litres in 1996 to 10 litres in 2005. Viet Nam is currently 25 per cent selfsufficient in milk, and imports about 0.6 to 0.8 million tons per year.

China

In 2005, China was the world’s fifth largest producer of milk, accounting for 24.5 million tons of ECM from cows and (to a lesser degree) buffaloes. Based on yearly increases of 27.2 per cent in the production of cow’s milk over the period 2000 to 2005, China should rapidly become the world’s third largest milk producer. Moreover, as most of the milk is sent to formal processors, China will soon rank second in terms of milk processing volumes. Production growth has been driven mainly by increased numbers of cows rather than increased milk yields.

With an average of 3.7 tons per cow/annum, China’s milk yields are the highest of all the Asian countries covered by the analysis. While the average herd size stands at 6.7 cows, Chinese dairy farms fall into two categories: small farms with 1 to 40 cows; and large farms with more than 200 cows. The small farms usually deliver their milk to a local collection point, take their cows to village milking centres or belong to a ‘dairy garden’ for which investors have provided the basic dairy infrastructure. The larger farms are either operated by the state (mainly in the southeast) or by private investors with close ties to the major dairy companies. As most dairy farms in China have insufficient land, farmers are obliged to purchase compound feed and roughage, the latter mainly in the form of corn silage.

Annual per capita milk consumption increased from 8 litres in 2000 to 22 litres in 2005 and to an estimated 28 litres in 2007. Of all the milk consumed in China, 86 per cent is produced within the country.

Uganda

In 2005, Uganda’s 0.8 million dairy farmers, with an average of 2 cows/farm yielding 3.6 litres of milk per farm/day, produced 1.4 million tons of ECM. Annual milk production has risen by 13.1 per cent since 2000, mainly thanks to increased milk yields (from 510 kg/cow/year in 2000 to 800 kg/cow/year in 2005). Milk supply in Uganda is very seasonal, peaking in April with 125 per cent of the yearly average and at its lowest in June/ July with only 65 per cent of the yearly average.

Uganda’s dairy farming systems may be classified as low-input/low-yield. Feeding is based mainly on grazing supplemented by small quantities of low-cost compound feed. Milking is done by hand and the milk transported to milk collection centres in villages or collected by local milkmen. About 30 per cent is consumed on-farm.

In 2005, annual per capita milk consumption stood at 50 kg, increasing by 4 to 6 per cent per annum. As yearly population growth is in excess of 3 per cent, it follows that national milk demand is increasing by 8 to 10 per cent per annum. Uganda is currently self-sufficient in milk and neither imports nor exports significant volumes. Only 2 per cent is delivered to milk formal processors.

Cameroon

With 0.13 million tons of ECM produced in 1996-2005 by approximately 4 000 dairy farmers, milk production and yields in Cameroon are lower than in Uganda. According to official statistics, production in Cameroon remained stable between 1996 and 2005, contrary to claims of increases on the part of local dairy experts.

As a general rule, milk production in Cameroon is a secondary activity of larger cattle herds that are kept for beef production. Feeding is mainly based on grazing and no use is made of compound feed. Milking is done by hand, and only 2 per cent of the milk is delivered to formal milk processors.

In 2005, yearly per capita milk consumption stood at 14 kg but, according to official statistics, is declining. In the same year, Cameron imported about 23 per cent of its milk needs.

Morocco

The country’s dairy sector is very similar to that of Uganda. In the period under review, some 1.4 million tons of milk were produced by about 0.8 million dairy farmers with an average of 2 cows/farm. Milk production estimated to be growing at about 4.2 per cent per annum.

Milk production in Morocco is usually a side activity of crop farmers cultivating around 2 ha of land. The feeding system is similar to that in India/Pakistan and is mainly based on compound feed and green fodder. Milking is mostly done by hand and, in 2005, about 63 per cent of the milk was delivered to formal milk processors.

In 2005, per capita milk consumption stood at 62 kg. Morocco is a net importer of dairy products (0.4 million tons ME), and is 80 per cent self-sufficient in milk.

Peru

In 2005, Peru produced 1.27 million tons of ECM on 108 000 dairy farms, with an average of 6.4 dairy cows/farm producing about 32 litres of milk per farm/day. This shows a yearly growth of 4.5 per cent, of which the main determinant was a 6.5 per cent increase in the number of cows in 2000 to 2005. Over the same period, however, yearly milk yields per cow decreased from 2 000 kg to 1 850 kg.

Dairy farming systems may be classified as low-input/lowyield. Feeding is based mainly on grazing supplemented by small quantities of low-cost compound feed. Some milk is produced on intensive dairy farms, mainly in the coastal region. Milking is done by hand and the milk transported to milk collection centres in villages or collected by local milkmen; about 94 per cent is delivered to formal milk processors.

In 2005, annual per capita milk consumption stood at 51 kg. Between 2000 and 2005, increased demand for milk was mainly driven by population growth (1.5 per cent/year). Peru is approximately 93 per cent self-sufficient in milk.

Germany

Germany was the world’s fourth largest producer of milk in 2005, accounting for 29.5 million tons of ECM, and the second largest milk processor (behind the USA). Milk is produced by 110 000 dairy farmers with average herds of 37.6 cows producing 732 kg of milk/day (19.5 kg/cow). National milk production has been stable since 1990 because of the milk quota system. Yields increased by 2 per cent per annum in 2000 to 2005, although the number of dairy cows decreased by 2 per cent per annum over the same period.

The country’s dairy production systems may be classified as high-input/high-output (7 100 litres per cow/year). Feeding is based mainly on grass/corn silage and compound feed. Milking is done by machine, after which the milk is stored on-farm in cooling tanks and collected by local milk processors every two days. About 95 per cent is delivered to milk processors; the remainder is either used on the farms (for home consumption or for feeding calves) or is sold directly to consumers.

Having remained stable since 1996, the country’s annual per capita consumption stood at 309 kg of ECM in 2005. As a member of the EU, Germany exports about 40 per cent of its milk and imports some 30 per cent of its consumption needs. The country is 116 to 127 per cent self-sufficient in milk, which translates into a surplus of 4 to 6 million tons per annum.

United States of America

The USA produces 76 million tons of ECM/year, generated by 78 000 dairy farms with average dairy herds of 115 cows producing 2 643 litres/day (or 23 litres/cow). Since 1975, national milk production has grown steadily by 1.1 per cent per annum, driven by yield increases of 1.5 per cent and a 0.3 per cent reduction in the number of dairy cows.

The country’s dairy production systems may be classified as high-input/high-output (8 400 litres per cow/year). As in Germany, feeding is based mainly on grass/corn silage and compound feed. The cows are milked by machine, mainly in milking parlours, and the milk is stored on-farm in cooling tanks before being sent to formal processors. About 99 per cent is delivered to processors.

Since 2000, annual per capita milk consumption has remained stable at around 250 kg of ECM. In 2005, the USA exported about 3.4 per cent of its milk and imported 2.8 per cent of its internal demand. Self-sufficiency stood at around 104 per cent in 2000 to 2005, translating into an annual milk surplus of 3 to 5 million tons.

New Zealand

In 2005, New Zealand produced 15.8 million tons of ECM, corresponding to about 20 per cent of that in the USA. This was produced by 12 300 dairy farmers with average dairy herds of 315 cows yielding 3 526 kg/ day (or 11.2 kg/cow). Production increased by 4.6 per cent per annum in 2000 to 2005, mainly driven by increased numbers of cows.

The country’s dairy production systems may be defined as intermediate-input/intermediate-output (3 868 litres per cow/ year). Feeding is based mainly on grazing. Milk production is therefore seasonal, peaking in November (180 per cent of the annual average) and at its lowest in June and July (5 to 10 per cent). Milking usually takes place in swing-over parlours or rotary milking systems, after which the milk is stored in cooling tanks on-farm and subsequently collected by local milk processors. Almost 100 per cent of the milk is delivered to formal milk processors.

New Zealand exports about 95 per cent of its milk production and, with an export volume of about 15 million tons, it is the world’s largest exporter of the commodity.

October 2010

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