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Global Dairy Market Report 2010 by ECSEI CenterThe Egyptian Center for Studies of Export & Importwww.ecsei.com www.ecsei-eg.com
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The Egyptian Center for Studies of Export & Import و ا�����اد ���� ا ��آ� ا ���ى �را��ت ا
www.ecsei.com www.ecsei-eg.com Email: [email protected] [email protected]
"Analysis report of the markets' crises"
The Egyptian Center for Studies of Export & Import Legal & Economic Consultations
General Manager Medhat Saad Eldin Legal Consultations
www.ecsei.com www.ecsei-eg.com … December 2009
The Egyptian Center for Studies of Export & Import
www.ecsei.com www.ecse
Our Summary Report's Notes:
Abbreviations and Explanatory Notes World Food Situation
• Critical sector
• First forecasts International Dairy Trade
• The major dairy products traded internationally can be broadly placed in four
• The biggest players in international dairy trade.
• Multinational firms• Multinational dairy companies
The Changing Face of Dairy Products Dairy Products.
• Raw milk • Major exporters of dairy products
Domestic Dairy Policies in Key Global Markets• The Interface between Domestic Dairy Policies and Dairy Trade• The top five countries or areas of the world for production• The European Union• Canada • Japan • United States
Dairy-Trading Nations with Little Domestic Support• Australia and New Zealand• Brazil and
Dairy Markets Review Outlook for the short to medium term
• The European Union• The United States• Australia • New Zealand• South America• Brazil • Argentina • China • India • Russia
International dairy trade International Dairy Markets
Tables:
Cows milk for selected countries
Cheese production for selected countries
Butter production for selected countries
Notes: this is summary General Manager
Medhat Saad Eldin
Legal consultations
The Global "Analysis r
The Egyptian Center for Studies of Export & Import و ا�����اد ���� ا ��آ� ا ���ى �را��ت ا
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Our Summary Report's Notes:
Abbreviations and Explanatory Notes
World Food Situation
Critical sector
First forecasts International Dairy Trade
The major dairy products traded internationally can be broadly placed in four categories. The biggest players in international dairy trade.
Multinational firms. Multinational dairy companies
The Changing Face of Dairy Products.
Major exporters of dairy products
Domestic Dairy Policies in Key Global Markets
Interface between Domestic Dairy Policies and Dairy TradeThe top five countries or areas of the world for production
European Union
United States Trading Nations with Little Domestic Support
Australia and New Zealand Brazil and Argentina
Dairy Markets Review - Overview of current market situation
Outlook for the short to medium term:
European Union United States
New Zealand South America
l dairy trade 2008
International Dairy Markets Outlook
Cows milk for selected countries 1,000 metric tons.
Cheese production for selected countries 1/1,000 metric tons
Butter production for selected countries 3/1,000 metric tons
Notes: this is summary Report for full report contacts us.
The Global Dairy Products Industry 2010"Analysis report of the market's crises"
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The major dairy products traded internationally can be broadly
Interface between Domestic Dairy Policies and Dairy Trade The top five countries or areas of the world for production:
Overview of current market situation
metric tons.
metric tons.
us.
2010
The Egyptian Center for Studies of Export & Import
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Abbreviations and Explanatory Notes
Acidity test
Milk quality tests that measures lactic acid Adulteration
Addition of other substances to milk reduces the quality of the milk (e.g. water) Alcohol test
Milk quality test. Artificial insemination
Animal breeding method. Association
Association consisting of and governed by representatives of milk producer
Groups. A recombined milk product
Is a product resulting from the combining of milk fat and milk-solids-nonpreserved forms with or without the addition of water to achieve the appropriate milk product composition. Artisan
Artisan cheeses are small volume cheeses, often produced with the milk of one herd, using traditional methods of production Affineur
The person who ages and ripens cheese.Sometimes cheeses are produced by a farmer and then sent to the affineur in order to age the cheeses. The affineur’s skiloften equal to the cheese maker's.select the temperature and humidity, wash the cheese for washed rind cheeses or whatever is needed to release the best qualities in each batch of cheese. Babcock test
Traditional method of measuring the butterfat content of milk, which may be used for calibrating modern electronic testing devices.
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Abbreviations and Explanatory Notes
that measures lactic acid.
of other substances to milk which reduces the quality of the milk (e.g. water).
.
consisting of and governed by representatives of milk producer
oduct
a product resulting from the combining of non-fat in their
preserved forms with or without the addition of water to achieve the appropriate milk
Artisan cheeses are small volume cheeses, often produced with the milk of one
using traditional methods of production
The person who ages and ripens cheese. Sometimes cheeses are produced by a farmer and then sent to the affineur in order
The affineur’s skill is often equal to the cheese maker's. They select the temperature and humidity, wash the cheese for washed rind cheeses or whatever is needed to release the best qualities in each batch of cheese.
method of measuring the rfat content of milk, which may be used
for calibrating modern electronic testing
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Bacteria
Single-celled organisms living either independently or in close association with other living organisms; often referred to as microbes or micro organisms because of their microscopic size. Some bacteria are beneficial, but others cause infectious disease
Breeding services
Upgrading of animals through introduction of improved genes Cheese
Milk product. Churning
Agitation of whole milk or creambutter adding starters and rennet Clot on boiling test
Milk quality test through heating Clotting
Change from liquid milk to (semiby. CODEX
The Codex Alimentarius Commission was
created in 1963 by FAO and WHO to develop food standards, guidelines and related texts such as codes of practice under the Joint FAO/WHO Food Standards Programme. The main purposes of this Programme are protecting health of the consumers and ensuring fair trade practices in the food trade, and promoting coordination of all food standards work undertaken by international governmental and nongovernmental organizations. Collection centre
A place to collect milk in bulk
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organisms living either independently or in close association with other living organisms; often referred to as microbes or micro
ms because of their microscopic size. Some bacteria are beneficial, but others cause infectious diseases.
of animals through introduction of improved genes.
of whole milk or cream to make butter adding starters and rennet.
quality test through heating.
from liquid milk to (semi-) solid
The Codex Alimentarius Commission was
by FAO and WHO to dards, guidelines and
related texts such as codes of practice under the Joint FAO/WHO Food Standards Programme. The main purposes of this Programme are protecting health of the consumers and ensuring fair trade practices in the food
ordination of all food standards work undertaken by international governmental and non-governmental organizations.
place to collect milk in bulk.
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Composite milk product
Is a product of which the milk, milk products or milk constituents are an essential part in terms of quantity in the final product, as consumed provided that the constituents not derived from milk are not intended to take the place in part or in whole of any milk constituent. Cream
Milk product.
Curd separation
After coagulation the milk is separated into whey and cheese curd.
Dairy
1. A retail outlet for milk products2. The feeding and milking sheds on a dairy3. Pertaining to or emanating from an animalsother thing concerned in the production of milk, e.g. dairy goat, dairy cleanser. Dairy barn
standard indoor housing in temperate and subarctic northern hemisphere countries; a common plan is to have animals housed on the ground floor and grain and hay on the top floor from which it is delivered to the animals below; the cows are tied in stanchions and milked on the spot or roam free and are milked in a parlor.
Dairy calf
Calf of a mating between a bull and a cow, both of dairy breeds. Dairy cow
Cow of a breed specifically defimilk production, as distinct from a beef or dual purpose breed or A bovine from which milk production is intended for human consumption, or is kept for raising replacement dairy heifers.
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Composite milk product
a product of which the milk, milk products or onstituents are an essential part in terms of
quantity in the final product, as consumed provided that the constituents not derived from milk are not intended to take the place in part or in whole of any milk constituent.
coagulation the milk is separated into whey
A retail outlet for milk products. The feeding and milking sheds on a dairy farm. Pertaining to or emanating from an animals or
other thing concerned in the roduction of milk, e.g. dairy goat, dairy
standard indoor housing in temperate and subarctic northern hemisphere countries; a common plan is to have animals housed on the ground floor and grain and hay on the top floor
is delivered to the animals below; the cows are tied in stanchions and milked on the spot or roam free and are milked in a parlor.
a mating between a bull and a cow, both of
Cow of a breed specifically defined as being for milk production, as distinct from a beef or dual
breed or A bovine from which milk production is intended for human consumption, or is kept for raising replacement dairy heifers.
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Dairy Steer A neutered male of any of the dbreeds. The "dairy steers" are raised for meat production and usually managed like beef cattle.
Dam
Mother or female parent in a pedigree.
Dairy farmer
A farmer whose major enterprise is dairy farming. Dairy herd
Includes milking cows, dry cows, heifers (maiden and in-calf), calves and, where needed, bulls. Called also milking herd, dry herd, followers. Dairy industry
Includes:
• The farms, • The milk collecting and handling services, • The processors, • Manufacturers and retailers and t
private and • Government organizations involved in a
coordinating or controlling function with respect to the harvesting and disposal of dairy products.
Dairy sanitizers
Disinfectants suitable for use in an environment and in a situation in which conhuman food chain is likely to occur. Dairy terms
Means names, designations, symbols, pictorial or other devices which refer to or are suggestive, directly or indirectly, of milk or milk products.
DDS
(Dairy development strategy)
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A neutered male of any of the dairy cattle breeds. The "dairy steers" are raised for meat production and usually managed like beef cattle.
Mother or female parent in a pedigree.
farmer whose major enterprise is dairy
, dry cows, heifers calf), calves and, where needed,
also milking herd, dry herd,
milk collecting and handling services,
and retailers and the
organizations involved in a coordinating or controlling function with respect to the harvesting and disposal of
Disinfectants suitable for use in an environment and in a situation in which contamination of the human food chain is likely to occur.
names, designations, symbols, pictorial or other devices which refer to or are suggestive, directly or indirectly, of milk or milk
development strategy).
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Essential Composition and Quality Factors:
Raw materials Milk and/or products obtained from milk. Permitted ingredients
• Starter cultures of harmless lactic acid and/or flavour producing bacteria and cultures of other harmless microorganisms
• Safe and suitable enzymes
• Sodium chloride.
• Potable water.
External factors
Agricultural policy and trade policy changes:
Policy issues remain to be decided and will impact on the outlook for the dairy sector.
Animal welfare concerns:
Animal welfare concerns related to food production continue to grow among consumers in the EU. It is not easy to consider how these concerns will evolve or how these concerns will impact on dairy trade.
Weather: Weather events will continue to contribute to dairy product price volatility.
Energy prices and input prices:
Rising energy prices will have an impact on dairy production costs and dairy demand. Environmental policies and consumer
preferences: Environmental concerns will exert an increasing influence on athe dairy sector. Exchange rates: Exchange rate movements will impact on export competitiveness.
Macro economic and population growth:
The rate of recovery in dairy demand will depend on the recovery in global economic growth.
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Essential Composition and Quality Factors:
Milk and/or products obtained from milk.
Starter cultures of harmless lactic acid and/or flavour producing bacteria and cultures of other harmless microorganisms.
fe and suitable enzymes.
Agricultural policy and trade policy changes:
Policy issues remain to be decided and will impact on the outlook for the dairy sector.
Animal welfare concerns:
oncerns related to food production continue to grow among consumers in the EU. It is not easy to consider how these concerns will evolve or how these concerns will impact on dairy
Weather events will continue to contribute to dairy
Energy prices and input prices:
Rising energy prices will have an impact on dairy production costs and dairy demand.
Environmental policies and consumer
Environmental concerns will exert an increasing influence on agriculture, including
Exchange rate movements will impact on export competitiveness.
Macro economic and population growth:
The rate of recovery in dairy demand will depend on the recovery in global
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griculture, including
The rate of recovery in dairy demand will depend on the recovery in global
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Nutrition and health agenda:
The health benefits of dairy product consumption may be undermined by legislation on labelling. Renationalization of dairy demand:
The renationalization of dairy demand would have an adverse impact on dairy exports.
FAO
Food and Agriculture Organization of the United Nations
Fermented milk
Milk left at room temperature into lactic acid. Fermented milk can be used to feed young calves and may include extra colostrums, transitional milk, or nutritional value.
FDA
FDA is an agency within the Department of Health and Human
centers and offices, which are listed in menu at left.
The FDA is responsible for protecting the public health by assuring the safety, efficacy, and security of human and veterinary drugs, biological products, medical devices, our nation’s food supply, cosmetics, and products that emit radiation.The FDA is also responsible for ainnovations that make medicines and foods more effective, safer, and more affordable; and helping the public get the accurate, sciencethey need to use medicines and foods to improve their he
Flavoured milk
A subclass of fluid (packaged milks) to which chocolate, strawberry and vanilla
Fluid milk products
Milk, flavored milk, concentrated milk, filled milk, skim milk, fortified skim milk, low fat milk, buttermilk, milk drinks, and cream products
Fresh Cow
A cow that has recently given birth to a Fresh Milk Dairy products having original qualities unimpaired and those recently produced or processed.
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Nutrition and health agenda:
The health benefits of dairy product consumption may be undermined by
of dairy demand:
of dairy demand would have an adverse impact on dairy
Food and Agriculture Organization of the United Nations
left at room temperature (less than 21c) in which the lactose is fermented
Fermented milk can be used to feed young calves and may include extra , transitional milk, or mastitis milk that are not saleable but have
FDA is an agency within the Department of Health and Human Services and consists of
centers and offices, which are listed in menu at left.
e for protecting the public health by assuring the safety, efficacy, and security of human and veterinary drugs, biological products, medical devices, our nation’s food supply, cosmetics, and products that emit radiation.The FDA is also responsible for advancing the public health by helping to speed innovations that make medicines and foods more effective, safer, and more affordable; and helping the public get the accurate, science-based information they need to use medicines and foods to improve their health.
A subclass of fluid (packaged milks) to which flavoring has been added, such as chocolate, strawberry and vanilla
milk, concentrated milk, filled milk, skim milk, fortified skim milk, k, buttermilk, milk drinks, and cream products
A cow that has recently given birth to a calf.
Dairy products having original qualities unimpaired and those recently produced
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The health benefits of dairy product consumption may be undermined by
of dairy demand would have an adverse impact on dairy
in which the lactose is fermented
Fermented milk can be used to feed young calves and may include extra milk that are not saleable but have
consists of
e for protecting the public health by assuring the safety, efficacy, and security of human and veterinary drugs, biological products, medical devices, our nation’s food supply, cosmetics, and products that emit radiation.
dvancing the public health by helping to speed innovations that make medicines and foods more effective, safer, and more
based information
has been added, such as
milk, concentrated milk, filled milk, skim milk, fortified skim milk,
Dairy products having original qualities unimpaired and those recently produced
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Gerber test
Test to determine amount of fat in milk
Ghee
Concentrated milk fat prepared by melting butter, decanting the fat after gravity separation from the serum, and driving off most of the remaining moisture by heating. About 1 percent moisture remains
Heat treatment
Destroying any potential pathogenic germs by heating milk at a minimum of for 30 min.
Handlers
Processors or dealers of milk who commonly purchase raw milk and sell pasteurized milk and milk products. Hand Milking The manual milking of an animal as opposed to the use of mechanical milking devices. ISO 1737
Evaporated milk and sweetened condensed milk Gravimetric method (Reference method) ISO 2446
Milk - Determination of fat conte ISO 4832
Microbiology of food and animal feeding stuffs enumeration of coliforms ISO 4833
Microbiology of food and animal feeding stuffs enumeration of microorganisms ISO 5538
Milk and milk products — IS0 6734
Sweetened condensed milkmethod). ISO 6611
Milk and milk products —moulds — Colony-count technique at
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unt of fat in milk
oncentrated milk fat prepared by melting butter, decanting the fat after gravity separation from the serum, and driving off most of the remaining moisture by
percent moisture remains. It is used mostly in Asia an
any potential pathogenic germs by heating milk at a minimum of
Processors or dealers of milk who commonly purchase raw milk and sell pasteurized milk and milk products.
manual milking of an animal as opposed to the use of mechanical milking
Evaporated milk and sweetened condensed milk - Determination of fat content Gravimetric method (Reference method).
Determination of fat content (Routine method).
Microbiology of food and animal feeding stuffs - Horizontal method for the enumeration of coliforms - Colony-count technique.
Microbiology of food and animal feeding stuffs — Horizontal method for the of microorganisms — Colony-count technique at 30 °C
— Sampling — Inspection by attributes.
Sweetened condensed milk — Determination of total solids content (reference
— Enumeration of colony-forming units of yeasts and/or count technique at 25 °C.
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oncentrated milk fat prepared by melting butter, decanting the fat after gravity separation from the serum, and driving off most of the remaining moisture by
It is used mostly in Asia and Africa.
any potential pathogenic germs by heating milk at a minimum of 63C
Processors or dealers of milk who commonly purchase raw milk and sell
manual milking of an animal as opposed to the use of mechanical milking
Determination of fat content -
Horizontal method for the
Horizontal method for the °C.
etermination of total solids content (reference
forming units of yeasts and/or
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ISO 8197
Milk and milk products — ISO 6888
Microbiology of food and animal feeding stuffs enumeration of coagulaseother species). ISO 8968
Milk — Determination of nitrogen content ISO 11866
Milk and milk products — ISO 8197
Milk and milk products —
ISO 14501
Milk and milk powder — Determination of aflatoxin Mimmunoaffinity chromatography and determination by highchromatography. Lactate To secrete or produce milk. Lagoon An earthen pond used as a primary storage site for manure. Leg Bands Cloth or plastic strips of a bright color used for marking treated cows, fresh cows, or cows needing special handling. Legume Any of thousands of plant species that have seed pods that split along both sides when ripe. Some of the more common legumes used for human consumption are beans, lentils, peanuts, peas, and soybeans. Others, such as clover and alfalfa, are used as animal feed. Legumes have a unique ability to obtain much or all of their nitrogen requirements from symbiotic nitrogen fixation. Letdown The process in a cow where physical stimulation causes a release of oxytocin and the contraction of smooth muscles supressure within the udder and milk flow. Liner A flexible sleeve in the milking teat cup or rigidfor massaging the teat end and intermittently cutting vacuum at the teat end during milking. Also called
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— Inspecting sampling — Inspection by variables
Microbiology of food and animal feeding stuffs — Horizontal method for the enumeration of coagulase-positive staphylococci (Staphylococcus aureus
Determination of nitrogen content - Kjeldahl Method.
— Enumeration of presumptive Escherichia c
— Inspecting sampling — Inspection by variables
Determination of aflatoxin M1 content — Cleanimmunoaffinity chromatography and determination by high-performance liquid
To secrete or produce milk.
An earthen pond used as a primary storage site for manure. Cloth or plastic strips of a bright color used for marking treated cows,
fresh cows, or cows needing special handling.
Any of thousands of plant species that have seed pods that split along both sides when ripe. Some of the more common legumes used for human consumption are beans, lentils, peanuts, peas, and soybeans. Others, such as clover and alfalfa,
imal feed. Legumes have a unique ability to obtain much or all of their nitrogen requirements from symbiotic nitrogen fixation.
The process in a cow where physical stimulation causes a release of oxytocin and the contraction of smooth muscles surrounding milk alveoli resulting in fluid pressure within the udder and milk flow.
A flexible sleeve in the milking teat cup or rigid-walled liner holder. Responsible for massaging the teat end and intermittently cutting vacuum at the teat end
ing milking. Also called inflation.
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Inspection by variables.
method for the aureus and
Enumeration of presumptive Escherichia coli.
Inspection by variables.
Clean-up by performance liquid
Cloth or plastic strips of a bright color used for marking treated cows,
Any of thousands of plant species that have seed pods that split along both sides when ripe. Some of the more common legumes used for human consumption are beans, lentils, peanuts, peas, and soybeans. Others, such as clover and alfalfa,
imal feed. Legumes have a unique ability to obtain much or all of
The process in a cow where physical stimulation causes a release of oxytocin and rrounding milk alveoli resulting in fluid
walled liner holder. Responsible for massaging the teat end and intermittently cutting vacuum at the teat end
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Lactoperoxidase
Enzyme that keeps the milk for a longer
Milk
Is the normal mammary secretion of milking animals obtained from one or more milking without either addition to it or extraction from it, intconsumption as liquid milk or for further processing. Milk from animals that is collected and processed (from cows, goats, sheep, yaks, buffaloes, camels). Milk collection
Collection of milk from more than one farmer to a collection point or
Milk cooling
Cooling milk to increase keeping time
Milk hygiene
Making sure a milk product is clean and safe for consumption
Milk product
Is a product obtained by any processing of milk, which may contain food additives, and other ingredie
Milk testing
Checking the hygiene and composition of milk
Pasteurization
Destroying any potential pathogenic germs by heating milk at a minimum of for 30 min.
Pasteurized milk
Milk that has been heat treated to a high temperature in order to kill potentially harmful bacteria. Of course much of the good bacteria Through technology, there are many methods that can be employed to reintroduce beneficial flavours back intomany extremely delicious pasteurized cheeses.
Processing of milk
Making milk products like cheese, yoghurt, et
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that keeps the milk for a longer period.
the normal mammary secretion of milking animals obtained from one or more without either addition to it or extraction from it, intended for
consumption as liquid milk or for further processing.
from animals that is collected and processed (from cows, goats, sheep, yaks,
of milk from more than one farmer to a collection point or
milk to increase keeping time.
sure a milk product is clean and safe for consumption.
a product obtained by any processing of milk, which may contain food additives, and other ingredients functionally necessary for the processing.
the hygiene and composition of milk.
any potential pathogenic germs by heating milk at a minimum of
heat treated to a high temperature in order to kill potentially Of course much of the good bacteria have been killed as well.
Through technology, there are many methods that can be employed to beneficial flavours back into the milk after the process.
many extremely delicious pasteurized cheeses.
milk products like cheese, yoghurt, etc.
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the normal mammary secretion of milking animals obtained from one or more ended for
from animals that is collected and processed (from cows, goats, sheep, yaks,
of milk from more than one farmer to a collection point or centre.
a product obtained by any processing of milk, which may contain food nts functionally necessary for the processing.
any potential pathogenic germs by heating milk at a minimum of 63C
heat treated to a high temperature in order to kill potentially been killed as well.
Through technology, there are many methods that can be employed to the milk after the process. There are
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Raw milk
Milk that has not been heat treated to kill bacteria.bacteria. When the milk is heated, both good and bad bacteria are killed.good bacteria contain flavours and when they are destroyed their flavour disappears as well. Raw milk cheeses often retain more subtle flavours specific to their milk.
Rennet
Substance causing milk to coagulate, used for the preparation of cheese
Rind
The exterior surface of the cheese. Semi-soft
These cheeses have a bit of bounce, when pressed they are firm, but give.When opened, they are often smooth and supple, but retain Skim milk
Milk from which sufficient cream has been removed to reduce its milk fat content to not more than 0.2 percentwater-soluble vitamins and only half as many calories as whole milk. In the final beverage form, it has been contains added vitamins A and D. It can be used in a liquid form to feed young calves.
SNF
Solids Non Fat.
Sweetened condensed milk
Milk product which can be obtained by the the addition of sugar, or by any other process which leads to a product of the same composition and characteristics Soft ripened
This is a cheese where the curds more or less liquefy during the aging process, taking between touch. When opened, they often ooze. Standardisation
Making milk with constant butterfat through partial skimming Thermalized milk
This is a heat treating process that is a half way meatechnically considered “raw milk”.than pasteurization, but for a longer period of time.potentially harmful bacteria are destroyed and at the same time mgood bacteria and enzymes are preserved contributing to increased flavour.
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Milk that has not been heat treated to kill bacteria. There are good and bad When the milk is heated, both good and bad bacteria are killed.
good bacteria contain flavours and when they are destroyed their flavour Raw milk cheeses often retain more subtle flavours specific to
causing milk to coagulate, used for the preparation of cheese
The exterior surface of the cheese.
These cheeses have a bit of bounce, when pressed they are firm, but give.When opened, they are often smooth and supple, but retain their shape.
Milk from which sufficient cream has been removed to reduce its milk fat content percent. Skim milk contains protein, lactose, minerals and
soluble vitamins and only half as many calories as whole milk. In the final beverage form, it has been pasteurized or ultra-pasteurizedcontains added vitamins A and D. It can be used in a liquid form to feed young
weetened condensed milk
product which can be obtained by the partial removal of water from milk with the addition of sugar, or by any other process which leads to a product of the same composition and characteristics.
This is a cheese where the curds more or less liquefy during the aging ing between 30 and 120 days. The cheese is notably soft to the
When opened, they often ooze.
milk with constant butterfat through partial skimming.
This is a heat treating process that is a half way measure and in manytechnically considered “raw milk”. The milk is heated to a lesser temperature
for a longer period of time. The idea is that many of the potentially harmful bacteria are destroyed and at the same time much of the good bacteria and enzymes are preserved contributing to increased flavour.
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There are good and bad When the milk is heated, both good and bad bacteria are killed. The
good bacteria contain flavours and when they are destroyed their flavour Raw milk cheeses often retain more subtle flavours specific to
causing milk to coagulate, used for the preparation of cheese.
These cheeses have a bit of bounce, when pressed they are firm, but give. their shape.
Milk from which sufficient cream has been removed to reduce its milk fat content minerals and
soluble vitamins and only half as many calories as whole milk. pasteurized and
contains added vitamins A and D. It can be used in a liquid form to feed young
partial removal of water from milk with the addition of sugar, or by any other process which leads to a product of the
This is a cheese where the curds more or less liquefy during the aging The cheese is notably soft to the
sure and in many regions is The milk is heated to a lesser temperature
The idea is that many of the uch of the
good bacteria and enzymes are preserved contributing to increased flavour.
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TS
Total Solids.
USDA
The U.S. Department of Agriculture (USDA)
Yoghurt Fermented milk product.
Washed rind
After these cheeses are formed, they begin a pcultured brine solution. This process washes away unwanted mould and bacteria and introduces bacteria that will act on the cheese and transform its character.Many washed rind cheeses are also washed with a local aladditional flavour. Washed rind cheeses are often known as the “stinky cheeses”flavour is usually more mild than the aroma suggests and is, many times, delightfully complex.
Whey
Watery part remaining after milk
Whey Cheeses
Are solid, semi-solid, or soft products which are principally obtained through either of the following processes: (1) The concentration of whey and the (2) The coagulation of whey by heat
Whole milk
Unaltered milk collected from day also colostrums and transitional milk).
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The U.S. Department of Agriculture (USDA).
After these cheeses are formed, they begin a process of being washed in a
This process washes away unwanted mould and bacteria and introduces that will act on the cheese and transform its character.
cheeses are also washed with a local alcoholic spirit imbuing
Washed rind cheeses are often known as the “stinky cheeses” The resulting flavour is usually more mild than the aroma suggests and is, many times,
part remaining after milk has curdled.
solid, or soft products which are principally obtained through following processes:
The concentration of whey and the molding of the concentrated product;The coagulation of whey by heat with or without the addition of acid.
milk collected from day 4 after calving until the end of a lactation and transitional milk).
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rocess of being washed in a
This process washes away unwanted mould and bacteria and introduces specific
coholic spirit imbuing
The resulting flavour is usually more mild than the aroma suggests and is, many times,
solid, or soft products which are principally obtained through
of the concentrated product; with or without the addition of acid.
after calving until the end of a lactation (see
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World Food Situation
With the second-highest recorded cereals year and stocks replenished, the world food supply looks less vulnerable to shocks than it was during last year’s food crisis, FAO said in its food outlook report published today. But some potential dangers remain, it also noted. “In spite of strong gains in recent weeks, international prices of most agricultural commodities have fallen in 2008 heights, an indication that many markets are slowly returning into balance,” the twice Apparent easing of market conditions was reflected in the benchmark FAO Food Price Index, which had fallen by one third since its peak in June 2008 at the height of the world food crisis But food prices remained high in many developing countries, and access to food by the poor also continued to be threatened
effects of the global economic crisis.
Critical sector
So far the improvement largely concerned cereals sector for food security –Overshot original forecasts, the report said. The bumper crop had also facilitated replenishment of global reserves to precrisis levels. “With the new 2009-2010prospects continue to be positive as world cereal productionexpected to be the second largest, after last year’s record,” it added. World production was forecast at as compared with 2 287 million tonnes in FAO’s first forecast for world cereal utilization in suggested a relatively weak growth of around the estimated 2008/09 levelThis compared with nearly First forecasts
First forecast for world cereal trade in nearly 4 percent from last year. This contraction mostly concerned wheat imports, which could fall by as much as 10 million tonnes in the new seasonproduction in several major wheat More problematic was the oilseed products sector, with prices on world markets increasing as a consequence of production setbacks in some major producers and of expanding consumption of animal feed in China and India. Oilseeds production in 2008/0percent more than the 403.1
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World Food Situation
highest recorded cereals crop expected this year and stocks replenished, the world food supply looks less vulnerable to shocks than it was during last year’s food crisis, FAO said in its food outlook report published today. But some potential dangers remain, it also noted.
pite of strong gains in recent weeks, international prices of most agricultural commodities have fallen in 2009 from their
an indication that many markets are slowly returning into balance,” the twice-yearly report said.
arket conditions was reflected in the benchmark FAO Food Price Index, which had fallen by one third since its peak in
at the height of the world food crisis.
But food prices remained high in many developing countries, and access to food poor also continued to be threatened by loss of employment, income and other
effects of the global economic crisis.
So far the improvement largely concerned cereals – the critical – after record production in 2008.
original forecasts, the report said. The bumper crop had also facilitated replenishment of global reserves to pre-
2010 marketing season commencing, prospects continue to be positive as world cereal production is expected to be the second largest, after last year’s record,” it
World production was forecast at 2 219 million tonnes million tonnes in 2008/09.
FAO’s first forecast for world cereal utilization in 2009/10 latively weak growth of around 1.3 percent from
level, to 2 230 million tonnes. This compared with nearly 4 percent growth in the previous season
First forecast for world cereal trade in 2009/10 was 257 million tonnpercent from last year.
This contraction mostly concerned wheat imports, which could fall by as much as million tonnes in the new season, reflecting a strong anticipated recovery in
production in several major wheat-importing countries.
More problematic was the oilseed products sector, with prices on world markets increasing as a consequence of production setbacks in some major producers and of expanding consumption of animal feed in China and India.
2008/09 was forecast at 405.9 million tonnes403.1 million tonnes estimated for the year before
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benchmark FAO Food Price Index, which had fallen by one third since its peak in
But food prices remained high in many developing countries, and access to food by loss of employment, income and other
million tonnes, down by
This contraction mostly concerned wheat imports, which could fall by as much as reflecting a strong anticipated recovery in
More problematic was the oilseed products sector, with prices on world markets increasing as a consequence of production setbacks in some major producers and
million tonnes, 0.7 million tonnes estimated for the year before.
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“The surge in soybean quotations in recent weeks, on the back of shrinking world reserves, is emerging as a cause for concern given its feed prices,” Food Outlook noted.
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“The surge in soybean quotations in recent weeks, on the back of shrinking world reserves, is emerging as a cause for concern given its strong bearing on food and feed prices,” Food Outlook noted.
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“The surge in soybean quotations in recent weeks, on the back of shrinking world strong bearing on food and
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International Dairy Trade
The major dairy products traded internationally can be broadly placed in
four categories:
Butter, Cheese, Dry milk powders, and Ingredients
Within these categories are a large number of “differentiated products”
Cheese varieties, Dry milk powders with a range of fat contents, or Milk components, such as the various milk proteins.
The ingredient trade has only recently emerged as a key sector, drive
primarily by widening uses of milk proteins and lactose (milk sugar) in
various food applications.
The biggest players in international dairy trade
The biggest players in international dairy trade are not necessarily the largest producers.
New Zealand, for example, is one of the smallest producing countries but is a major dairy trading country
A country’s population relative to its production of milk is a key to determining the likelihood of its having a milk surplus or a milk deficit
Milk-surplus countries that supply foreign markets typically have an efficient manufacturing sector capable of producing storable dairy products with quality attributes at prices that make exporting economically feasible
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International Dairy Trade
The major dairy products traded internationally can be broadly placed in
Dry milk powders, and
hese categories are a large number of “differentiated products”
heese varieties,
ry milk powders with a range of fat contents, or
ilk components, such as the various milk proteins.
The ingredient trade has only recently emerged as a key sector, drive
primarily by widening uses of milk proteins and lactose (milk sugar) in
various food applications.
The biggest players in international dairy trade
The biggest players in international dairy trade are not necessarily the .
nd, for example, is one of the smallest producing countries but is a major dairy trading country. A country’s population relative to its production of milk is a key to determining the likelihood of its having a milk surplus or a milk deficit
us countries that supply foreign markets typically have an efficient manufacturing sector capable of producing storable dairy products with quality attributes at prices that make exporting economically feasible
� و ا�����اد��� ا ��آ� ا ���ى �را��ت ا
The major dairy products traded internationally can be broadly placed in
hese categories are a large number of “differentiated products”
The ingredient trade has only recently emerged as a key sector, driven
primarily by widening uses of milk proteins and lactose (milk sugar) in
The biggest players in international dairy trade are not necessarily the
nd, for example, is one of the smallest producing countries but
A country’s population relative to its production of milk is a key to determining the likelihood of its having a milk surplus or a milk deficit.
us countries that supply foreign markets typically have an efficient manufacturing sector capable of producing storable dairy products with quality attributes at prices that make exporting economically feasible.
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International dairy trade haunwanted surplus commodities. However, dairy trade is now increasingly driven by demands from developingupgrade diets and developed
Dairy markets everywhere are being shaped by consumer demands, the ability of dairy farmers to react to change, and dairy company strategies for maximizing profits. Firms operating successfully in global dairy markets are those that respond quickly to changing econpolicies—nonagricultural as well as agriculturaland demand factors.
Those firms may be national firms operating in single countries, regional firms operating in a wella presence in multiple regions or areas.
Competition among firms has grown, but so has the number of firms joining forces.
As international dairy companies recognize the potential benefits from supplying milk and dairy products in differenfor demand growth, they are repositioning themselves to source milk and products from multiple locations. This trend is spawning partnerships and joint ventures among firms seeking to benefit by controlling all stages of the production process.
Direct investment across borders has also altered competition in dairy markets. Globalization has tended to emphasize the strength of multinational dairy firms, with the most prominent being
• Nestlé (Switzerland), • Arla Foods (Denmark• Danone (France), • The Fonterra Co• Lactalis (France), • Unilever (Netherlands• Kraft Foods (U.S.).
Multinational firms
Multinational firms can operate in several countries or regions using any number of approaches.
They can build new facilities to manufacture locally demanded products, or they can form alliances or partnerships with existing local firms that have cultivated local demand.
Purchase of local brands is another option. A strategy that emploreduce price risks and market volatility.
While multinationals are most active in stable, wellalliances or partnerships with local firms have helped them expand to emerging markets in recent years.
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International dairy trade has often been called a dumping ground for unwanted surplus commodities. However, dairy trade is now increasingly driven by demands from developing-country consumers wanting to upgrade diets and developed-country markets seeking specialty products
kets everywhere are being shaped by consumer demands, the ability of dairy farmers to react to change, and dairy company strategies for maximizing profits. Firms operating successfully in global dairy markets are those that respond quickly to changing economic forces, changing
nonagricultural as well as agricultural—and shifts in milk supply and demand factors.
Those firms may be national firms operating in single countries, regional firms operating in a well-defined area, or multinational (globala presence in multiple regions or areas.
Competition among firms has grown, but so has the number of firms
As international dairy companies recognize the potential benefits from supplying milk and dairy products in different countries and the prospects for demand growth, they are repositioning themselves to source milk and products from multiple locations. This trend is spawning partnerships and joint ventures among firms seeking to benefit by controlling all stages of
roduction process.
Direct investment across borders has also altered competition in dairy markets. Globalization has tended to emphasize the strength of multinational dairy firms, with the most prominent being :
Nestlé (Switzerland), Arla Foods (Denmark-Sweden), Danone (France), he Fonterra Co-operative Group (New Zealand), Lactalis (France), Unilever (Netherlands-U.K), and Kraft Foods (U.S.).
Multinational firms can operate in several countries or regions using any pproaches.
They can build new facilities to manufacture locally demanded products, or they can form alliances or partnerships with existing local firms that have cultivated local demand.
Purchase of local brands is another option. A strategy that employs all of these approaches enables multinationals to reduce price risks and market volatility. While multinationals are most active in stable, well-established markets, alliances or partnerships with local firms have helped them expand to
s in recent years.
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s often been called a dumping ground for unwanted surplus commodities. However, dairy trade is now increasingly
country consumers wanting to country markets seeking specialty products
kets everywhere are being shaped by consumer demands, the ability of dairy farmers to react to change, and dairy company strategies for maximizing profits. Firms operating successfully in global dairy markets
omic forces, changing and shifts in milk supply
Those firms may be national firms operating in single countries, regional defined area, or multinational (global) firms with
Competition among firms has grown, but so has the number of firms
As international dairy companies recognize the potential benefits from t countries and the prospects
for demand growth, they are repositioning themselves to source milk and products from multiple locations. This trend is spawning partnerships and joint ventures among firms seeking to benefit by controlling all stages of
Direct investment across borders has also altered competition in dairy markets. Globalization has tended to emphasize the strength of
Multinational firms can operate in several countries or regions using any
They can build new facilities to manufacture locally demanded products, or they can form alliances or partnerships with existing local firms that have
ys all of these approaches enables multinationals to
established markets, alliances or partnerships with local firms have helped them expand to
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Multinational dairy companies
Have long viewed the U.S. with its large and affluent market as an opportunity. Since trade opportunities are limited by trade impediments, multinationals have chosen to make direct investments.
Led by firms based in the European Union (EU), foreign direct investment in the U
Nestlé and Unilever have gained a major stake in the U.S. ice cream industry through purchases of U.S. brands.
Together, they account for asales in the U.S.
Several French companiesBongrain—are involved in U.S. yogurt and cheese markets.
Yoplait, a premier brand of Sodiaal, has been licensed to General Mills,while the Président brand of cheese is a Lactalis product manufactured in Wisconsin and California.
The Changing Face of Dairy Products
Dairy products available on the market range from basic raw milk to fairly standardized “commodity” products to an array of higher valued products that have only recently gained wider market presence.
Historically, when trade is the issue, both within and between countries, the commodity productsnonfat dry milk, and butter
These were the products that could best withstand the rigors of transport. However, factors such as the emergence of sophisticated milk components as ingredients, greater emphasis on cheese variety (including brands), recognition of wellinternational product markets, development of manufacturing processes that lengthen shelfchanged the way firms assess both domestic and global dairy marketplaces.
These changes in global dairy marketsignificant market intervention by some of the world’s leading dairy product importers and exporters.
Many countries maintain border and domestic support measures of various types for their dairy sectors
Dairy policies around the world are changing slowly, primarily as a result of the Uruguay Round of trade negotiations.
The dominant border measures now in place are tariffs or tariffsystems, and they are at the core of many issues surrounding market access.
Domestic dairy policies include mainly price support and institutionalized pricing systems, policies that have been called trade distorting in many circles.
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Multinational dairy companies
Have long viewed the U.S. with its large and affluent market as an opportunity. Since trade opportunities are limited by trade impediments, multinationals have chosen to make direct
d by firms based in the European Union (EU), foreign direct investment in the U.S. now stands at about $5 billion. Nestlé and Unilever have gained a major stake in the U.S. ice cream industry through purchases of U.S. brands. Together, they account for about 30 percent of supermarket ice cream
Several French companies—Fromageries Bel, Sodiaal, Lactalis, and
are involved in U.S. yogurt and cheese markets. Yoplait, a premier brand of Sodiaal, has been licensed to General Mills,while the Président brand of cheese is a Lactalis product manufactured in Wisconsin and California.
The Changing Face of Dairy Products
Dairy products available on the market range from basic raw milk to fairly standardized “commodity”
array of higher valued products that have only recently gained wider market presence. Historically, when trade is the issue, both within and between countries, the commodity products—cheese, nonfat dry milk, and butter—have held center stage.
e the products that could best withstand the rigors of transport. However, factors such as the emergence of sophisticated milk components as ingredients, greater emphasis on cheese variety (including brands), recognition of well-defined local, national, aninternational product markets, development of manufacturing processes that lengthen shelf-life, and improved transportation systems have changed the way firms assess both domestic and global dairy
These changes in global dairy markets are taking place in the context of significant market intervention by some of the world’s leading dairy product importers and exporters. Many countries maintain border and domestic support measures of various types for their dairy sectors.
es around the world are changing slowly, primarily as a result of the Uruguay Round of trade negotiations. The dominant border measures now in place are tariffs or tariffsystems, and they are at the core of many issues surrounding market
Domestic dairy policies include mainly price support and institutionalized pricing systems, policies that have been called trade distorting in many
� و ا�����اد��� ا ��آ� ا ���ى �را��ت ا
Have long viewed the U.S. with its large and affluent market as an
d by firms based in the European Union (EU), foreign direct
Nestlé and Unilever have gained a major stake in the U.S. ice cream
percent of supermarket ice cream
Fromageries Bel, Sodiaal, Lactalis, and
Yoplait, a premier brand of Sodiaal, has been licensed to General Mills, while the Président brand of cheese is a Lactalis product manufactured in
defined local, national, and even international product markets, development of manufacturing processes
life, and improved transportation systems have changed the way firms assess both domestic and global dairy
s are taking place in the context of significant market intervention by some of the world’s leading dairy
Many countries maintain border and domestic support measures of various
es around the world are changing slowly, primarily as a result
The dominant border measures now in place are tariffs or tariff-rate quota systems, and they are at the core of many issues surrounding market
Domestic dairy policies include mainly price support and institutionalized pricing systems, policies that have been called trade distorting in many
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Dairy Products
Fluid Milk Egg Nog Cheese Butter Yogurt Ice Cream Powdered Milk Whey Powder Butter Powder Meat Leather goods Fertilizers Cosmetics
The variety of products resulting from the milk. Fluid milk is available in several varieties
Skim Milk (0% fat), 1%, (approximately 3.5%). Raw milk
Is separated into skim milk and cream, and then reblended to a standard fat content for each product. Because cows' milk averages more than extra cream is used to make other liquid products like whipping cream, half and half, and eggnog or it is manufactured into butter or ice cream. Fluid milk in the U.S. is pasteurized (milk is pasteurizedby rapidly heating it to 72seconds, and then quickly cooling) to kill potentially harmful bacteria. Fluid milk is also homogenized (fat dispersed so they do not float to the top) and is fortified with vitamins A and D, which along with the absorbable calcium naturally in milk are needed for strong healthy bones and teeth. Over the most recent two decades, fluid milk consumption per capita has declined, and sales of lowfat milk have increased relative to whole milk. Recent innovative marketing of convenient single servings of milk and introduction of a wide variety of milk flavors have increased sales of individual servings
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The variety of products resulting from the milk.
Fluid milk is available in several varieties
, 2%, and Whole
d into skim milk and cream, and then re-blended to a standard fat content for each product.
milk averages more than 3.5% fat, the extra cream is used to make other liquid products like whipping cream, half and half, and eggnog or it is
actured into butter or ice cream.
Fluid milk in the U.S. is pasteurized (milk is pasteurized 72 - 75 °C for 15 to 20
seconds, and then quickly cooling) to kill potentially
Fluid milk is also homogenized (fat droplets are dispersed so they do not float to the top) and is fortified with vitamins A and D, which along with the absorbable calcium naturally in milk are needed for strong healthy bones and teeth.
Over the most recent two decades, fluid milk on per capita has declined, and sales of low-
fat milk have increased relative to whole milk. Recent innovative marketing of convenient single servings of milk and introduction of a wide variety of milk flavors have increased sales of individual servings.
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Major exporters of dairy products
WHOLE MILK POWDER
World
New Zealand
European Union *
Argentina
Australia
SKIM MILK POWDER
World
United States
New Zealand
European Union *
Australia
BUTTER
World
New Zealand
European Union *
Australia
Belarus
CHEESE
World
European Union *
New Zealand
Australia
Belarus
* Excluding trade between the European Union Member States.
Domestic Dairy Policies in Key Global Market The Interface between
For dairy industries in individual countries, the first priority is to provide anadequate supply of milk to satisfy domestic market needs, first the fluidmarket, and then manufactured pro
Domestic dairy policiespromote milk production in athey have promoted surplus
Those surpluses are available for exportwhich they are termed trade distorting.
By explicitly including agricultural trade and domestic agricultural supportpolicies in its negotiations, the Uruguay Round of the General Agreementon Tariffs and Trade (GATT) opendebates during trade talks that often centered on domestic dairy policies and programs.
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Major exporters of dairy products
2007 2008 Preliminary 2009
Thousand tonnes
WHOLE MILK POWDER
1 757 1 849 1
680 607
366 484
115 120
116 107
KIM MILK POWDER
1 145 1 201 1
255 400
281 242
201 179
134 112
852 809
361 325
210 150
66 56
50 55
1 818 1 751 1
594 546
309 247
218 211
92 101
* Excluding trade between the European Union Member States.
Domestic Dairy Policies in Key Global Markets
between Domestic Dairy Policies and Dairy Trade
For dairy industries in individual countries, the first priority is to provide anadequate supply of milk to satisfy domestic market needs, first the fluidmarket, and then manufactured product markets.
Domestic dairy policies and programs are generally mechanisms to promote milk production in a country, but in some cases around the world they have promoted surplus production above domestic needs.
Those surpluses are available for export but may also impede importswhich they are termed trade distorting.
By explicitly including agricultural trade and domestic agricultural supportpolicies in its negotiations, the Uruguay Round of the General Agreementon Tariffs and Trade (GATT) opened the door for several contentiousdebates during trade talks that often centered on domestic dairy policies
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Forecast
1 826
686
386
107
109
1 186
350
278
180
115
798
338
150
58
60
1 776
536
284
215
110
* Excluding trade between the European Union Member States.
Policies and Dairy Trade
For dairy industries in individual countries, the first priority is to provide an adequate supply of milk to satisfy domestic market needs, first the fluid
and programs are generally mechanisms to country, but in some cases around the world production above domestic needs.
but may also impede imports—for
By explicitly including agricultural trade and domestic agricultural support policies in its negotiations, the Uruguay Round of the General Agreement
ed the door for several contentious debates during trade talks that often centered on domestic dairy policies
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As evidenced by these discussions, firms interested in greater international market participation may benefit from an assessment domestic dairy policies and programs as they interface with dairy trade policies.
As the global dairy industry continues to evolve, it is important to determine
those countries for which the interface between international dairy trade and domestic dairy policy is an issue.
The top five countries or
Imports, and exports of
powder.
Almost all countriesand at least two countries have both.
The bottom line in the table identifies four countrieswith significant institutional structures, other than tariffs and TRQs, in placeindustry support: The EU, Canada, Ja
Years—a 7-percent reduction per year in a 4-percent reduction in
For nonfat dry milk, the price reductions are uniform at 5 percent per Yearthat actually did occur.
A limit has been established for annual intervention purchases of 30,0002004 and reduced by
The EU will make direct payments, which may be coupled to milk production or not, to cover lost rev
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As evidenced by these discussions, firms interested in greater international market participation may benefit from an assessment of the effects of domestic dairy policies and programs as they interface with dairy trade
As the global dairy industry continues to evolve, it is important to
those countries for which the interface between international dairy trade domestic dairy policy is an issue.
top five countries or areas of the world for production, consumption,
mports, and exports of butter, cheese, nonfat dry milk, and whole milk
Almost all countries have tariffs or tariff-rate quota (TRQ) systems in place countries have both.
The bottom line in the table identifies four countries with significant institutional structures, other than tariffs and TRQs, in place to provide domestic dairy industry support:
EU, Canada, Japan, and the United States. percent reduction per year in 2005-07 and
percent reduction in 2008. For nonfat dry milk, the price reductions are uniform
Year from 2004 to 2006, reductions that actually did occur.
een established for annual intervention 30,000 tons of butter by 2008, starting from 70,000
and reduced by 10,000 tons annually. The EU will make direct payments, which may be coupled to milk
not, to cover lost revenues due to price reductions.
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As evidenced by these discussions, firms interested in greater international of the effects of
domestic dairy policies and programs as they interface with dairy trade
As the global dairy industry continues to evolve, it is important to
those countries for which the interface between international dairy trade
areas of the world for production, consumption,
butter, cheese, nonfat dry milk, and whole milk
systems in place
70,000 tons in
The EU will make direct payments, which may be coupled to milk enues due to price reductions.
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Member states may makeprovided by the EU(noncommodity-specific) single farm
The EU
The EU increased its population bypercent and its arable land by nearly Other countries are also scheduled for membership, including Romania and Bulgaria in2007.
The ongoing changes in the EU will result in its having a larger prein global agricultural markets, but whether it will be an importing orproducts is to be determined.
Canada
Canadian dairy policy rests first and foremost on the supply managementsystem implemented in the mid
All current programs are designed
Both the Federal and the Provincialregulating milk markets.
Canada has several other programs in place that address seasonality,domestic dairy product innovatthe provision of milk components through a special use permit for use inmanufactured products.
A revenue pooling system in place since revenues from all milk sales, fluid and industfactors, to be used to establish blend prices for
Canada also employs a purchase program for butter and skimthat establishes reference (support) prices for milk used inproducts.
Canada implemented several TRQs for dairy products under the terms of the World Trade Organization butter.
Approximately two(Canadian Dairy Commission
Japan
Dairy policies in Japan emphasize selfproduction through milk supply controls and direct producersupport.
There are two milk marketsmanufacturing milk.
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Member states may make additional payments from a national budget provided by the EU. In 2008, dairy payments will be incorporated into the
specific) single farm payment (Kelch and Normile
he EU increased its population by nearly 30 percent and its arable land by nearly 40 percent.
are also scheduled for membership, including Romania and Bulgaria in
The ongoing changes in the EU will result in its having a larger presence in global agricultural markets, but whether it will be an importing or exporting area for various products is to be determined.
Canadian dairy policy rests first and foremost on the supply managementsystem implemented in the mid-1970s.
current programs are designed with this system as the backdrop.
Both the Federal and the Provincial Governments are involved in regulating milk markets.
Canada has several other programs in place that address seasonality,domestic dairy product innovation, the marketing of dairy ingredients, andthe provision of milk components through a special use permit for use inmanufactured products.
A revenue pooling system in place since 1996 serves as a means for revenues from all milk sales, fluid and industrial, adjusted by several factors, to be used to establish blend prices for producers. Canada also employs a purchase program for butter and skimthat establishes reference (support) prices for milk used in manufactured
mented several TRQs for dairy products under the terms of World Trade Organization (WTO) in 1994, the primary TRQ being for
Approximately two-thirds of the butter TRQ is allocated to NewCanadian Dairy Commission, 2005).
y policies in Japan emphasize self-sufficiency in milk and dairyproduction through milk supply controls and direct producer
There are two milk markets—one for drinking milk and one for manufacturing milk.
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additional payments from a national budget payments will be incorporated into the
Kelch and Normile, 2004).
Canadian dairy policy rests first and foremost on the supply management
with this system as the backdrop.
Governments are involved in
Canada has several other programs in place that address seasonality, ion, the marketing of dairy ingredients, and
the provision of milk components through a special use permit for use in
serves as a means for adjusted by several
Canada also employs a purchase program for butter and skim milk powder manufactured
mented several TRQs for dairy products under the terms of the primary TRQ being for
thirds of the butter TRQ is allocated to New Zealand
sufficiency in milk and dairy product income
one for
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The quantity of fluiproducers and allocated to regional membersquota and face penalties if they exceed it.
Manufacturing milk constitutes about and Roberts, 2001milk to be used for cheese production.
Quota participation is voluntary,payments for milk producedproduced over their quota.
The direct payment system replaced a deficiency payment system in
Japan initiated an income stabilization program for milk producers into reduce the effects of dairy product price declines.
The Agriculture and Livestock Inenterprise, is authorized to stabilize dairy product prices by market intervention and stockpiling2005).
United States
U.S. milk producers have received government support since
Current domestic programs include milk price support, the Federal milk marketing order system, and direct payments under the Milk Income Loss Contract (MILC) program.
Dairy policies and programs have been modifiedeconomic relationships over time, but underlying generalremain the same: ensure the orderly marketing of an adequatefresh wholesome milk to meet consumer demands at reasonableand provide adequate returns to milk producers (Manchester a2001).
WTO commitments in industry.
Legislation in 1996proposed fundamental changes in domestic dairy policies and programs that, if implemented, wo
The Dairy Export Incentive Program (DEIP), a program for subsidizing certain dairy productend of the price support program was proposed. Milk price support never actually ended. It
was revived in its more traditional “permanent” form in Payment program for milk producers, MILC, was authorized with paymentsFirst made in 2003
The DEIP was continued still subject to the reducedthe WTO.
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The quantity of fluid milk is set by a national board of designated milk producers and allocated to regional members who voluntarily accept their quota and face penalties if they exceed it.
Manufacturing milk constitutes about 40 percent of total production 2001) and is subject to a formal quota system,
milk to be used for cheese production.
Quota participation is voluntary, and those who participate receive direct payments for milk produced within their quota and no payment for milk
ver their quota.
direct payment system replaced a deficiency payment system in
Japan initiated an income stabilization program for milk producers into reduce the effects of dairy product price declines.
The Agriculture and Livestock Industries Corporation, a state trade enterprise, is authorized to stabilize dairy product prices by market intervention and stockpiling when necessary (Obara, Dyck, and Stout,
U.S. milk producers have received government support since
Current domestic programs include milk price support, the Federal milkmarketing order system, and direct payments under the Milk Income LossContract (MILC) program.
Dairy policies and programs have been modified to meet changing elationships over time, but underlying general objectives
remain the same: ensure the orderly marketing of an adequatefresh wholesome milk to meet consumer demands at reasonableand provide adequate returns to milk producers (Manchester a
WTO commitments in 1994 had immediate implications for the U
1996 addressed meeting the WTO commitments andproposed fundamental changes in domestic dairy policies and programs
if implemented, would reduce trade-distorting support.
Incentive Program (DEIP), a program for subsidizing certain dairy product exports, was limited by WTO commitments, and the
support program was proposed. Milk price support never
was revived in its more traditional “permanent” form in 2002program for milk producers, MILC, was authorized with payments
2003. The DEIP was continued still subject to the reduced Levels agreed to under
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board of designated milk who voluntarily accept their
percent of total production (Bull , except for
and those who participate receive direct within their quota and no payment for milk
direct payment system replaced a deficiency payment system in 2001.
Japan initiated an income stabilization program for milk producers in 2001
dustries Corporation, a state trade enterprise, is authorized to stabilize dairy product prices by market
when necessary (Obara, Dyck, and Stout,
U.S. milk producers have received government support since the 1930s.
Current domestic programs include milk price support, the Federal milk marketing order system, and direct payments under the Milk Income Loss
to meet changing objectives
remain the same: ensure the orderly marketing of an adequate supply of fresh wholesome milk to meet consumer demands at reasonable prices and provide adequate returns to milk producers (Manchester and Blayney,
had immediate implications for the U.S. dairy
addressed meeting the WTO commitments and proposed fundamental changes in domestic dairy policies and programs
distorting support.
Incentive Program (DEIP), a program for subsidizing exports, was limited by WTO commitments, and the
support program was proposed. Milk price support never
2002, and a direct program for milk producers, MILC, was authorized with payments
agreed to under
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Dairy-Trading Nations
Most of the remaining countries that appear as major dairy product exportersor importers have few or no domestic dairy policies or programs.
Australia and New Zealand
Are long-time international dairy market participants. New Zealand has not had significant agricultural support of any kindsince the mid-1980
The Australian dairy industry generally has been moreefforts to tie its agricultural industries to internatiodomestic dairy policy changesmarket pricing was reformed.
Brazil and Argentina
Countries such as Brazil and Argentina are relatively new participants in international dairyunknown.
However, they are clearly recognized as potential key suppliers and have relatively unregulated domestic industries.
Other importing and exporting relationshipsproximity and possi
Domestic dairy policies and programs in key trading areas or nations are still a significant determinant of global dairy product flows.
Dairy industry representativesconcerns in statements
• market access (including administration• export subsidies, and • change in existing domestic
Milk producers, processors, product manufacturers,firms in other countries have generally expressed the sameto different degrees.
Assessments of dairy trade liberalizationof domestic policies and programs, dairysubsidies.
Dairy Markets Review
Global dairy markets have experienced substantial price swings over the last two years. In rise to a record increase in world prices across the f
However, this was then followed by an even more dramatic collapse in world dairy product prices over the last
Numerous factors, on both the demand side and the supply side, played a role in the evolution of world dair
)22e (Pag
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Trading Nations with Little Domestic Support
Most of the remaining countries that appear as major dairy product exportersor importers have few or no domestic dairy policies or programs.
Australia and New Zealand
ternational dairy market participants. New Zealand has not had significant agricultural support of any kind
1980s.
The Australian dairy industry generally has been more protected, but efforts to tie its agricultural industries to international marketsdomestic dairy policy changes—the most recent in 2000 when fluidmarket pricing was reformed.
Countries such as Brazil and Argentina are relatively new participants in dairy-market exporting, and their long-term prospects are
However, they are clearly recognized as potential key suppliers and have unregulated domestic industries.
Other importing and exporting relationships seem to be based on regional proximity and possibly former political ties.
Domestic dairy policies and programs in key trading areas or nations are significant determinant of global dairy product flows.
Dairy industry representatives in the United States emphasize three major ements regarding international dairy trade:
market access (including administration of border measures), export subsidies, and change in existing domestic dairy support programs.
Milk producers, processors, product manufacturers, and dairy marketing irms in other countries have generally expressed the same concernto different degrees.
Assessments of dairy trade liberalization often posit complete elimination of domestic policies and programs, dairy border measures, and export
Markets Review - Overview of current market situation
Global dairy markets have experienced substantial price swings over the In 2007 and early 2008, a range of factors initially gave
rise to a record increase in world prices across the full dairy product range. However, this was then followed by an even more dramatic collapse in world dairy product prices over the last 12 months. Numerous factors, on both the demand side and the supply side, played a role in the evolution of world dairy prices over the last three years.
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Most of the remaining countries that appear as major dairy product exporters
New Zealand has not had significant agricultural support of any kind
protected, but nal markets have led to
when fluid milk
Countries such as Brazil and Argentina are relatively new participants in term prospects are
However, they are clearly recognized as potential key suppliers and have
seem to be based on regional
Domestic dairy policies and programs in key trading areas or nations are
in the United States emphasize three major
of border measures),
and dairy marketing concern—but
often posit complete elimination border measures, and export
Overview of current market situation
Global dairy markets have experienced substantial price swings over the a range of factors initially gave
ull dairy product range. However, this was then followed by an even more dramatic collapse in
Numerous factors, on both the demand side and the supply side, played a y prices over the last three years.
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World milk production has fallen since impacting production in Australia, New Zealand, Argentina and Ukraine, while some countries also placed restriction on exports to world markets as a means of dampening domestic food price inflation.
On the demand side, strong global consumption growth had been a consistent trend in dairy markets in the current decade.
Rapid economic growth in developing economies and in crude oil exporting countries stimulated demand for dairy products. In addition, population growth, increased have also boosted consumption.
In 2007 dairy producers temporarily experienced an income boomcosts remained relatidecoupled compensation became available for the price drop that had been expected under the Mid Term Review.
As energy costs rose and the development of the biofuels sector continued, a surge in farm i2008 this offset the benefits for producers that the initial increase in dairy prices provided.
The next stage in the process saw a negative reaction in consumer and food ingredient demand to the increase in 2008.
Dairy product consumption per capita dropped around the world as consumers increasingly sought out value by buying cheaper products and smaller packets and by reducing domestic food waste through better monitoring of use by dates.
The economic and financial crisis which began to emerge in mid added further complexity to the dairy market picture.
As income growth stalled in the face of recession, dairy product consumption contracted and global dairy prices fell second half of 2008
Outlook for the short to medium term
The report focuses on the global dairy product production and consumption outlook and how this is likely to European Union
In spite of the prescharacterized by an excess of production over consumption.
In 2008 EU milk self Third country imports are small relative to total consumption and are limited by tariffs barriers, which protect the EU market and allow internal EU prices to exceed prices on the world market.
Nevertheless, special import arrangements allow for a range of imports into the EU by other dairy exportersbutter, 4,000 tonnes of cheese for processing and cheddar, all at reduced tariffs.
Australia has 500 tonnes of cheese for processing and cheddar also at reduced tariffscheddar, again at reduced tathere are several noncovering 11,360 tonnes of butter69,000 tonnes of skimmed milk powder
There are numerous bilaterother countries, normally at zero duties.
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World milk production has fallen since 2005, with unfavourable weather impacting production in Australia, New Zealand, Argentina and Ukraine, while some countries also placed restriction on exports to world markets
means of dampening domestic food price inflation. On the demand side, strong global consumption growth had been a consistent trend in dairy markets in the current decade. Rapid economic growth in developing economies and in crude oil exporting
stimulated demand for dairy products. In addition, population growth, increased urbanization and the adoption of western eating habits have also boosted consumption.
dairy producers temporarily experienced an income boomcosts remained relatively stable while milk prices increased. In addition, decoupled compensation became available for the price drop that had been expected under the Mid Term Review. As energy costs rose and the development of the biofuels sector continued, a surge in farm input prices followed and in the latter half of
this offset the benefits for producers that the initial increase in dairy
The next stage in the process saw a negative reaction in consumer and food ingredient demand to the increase in dairy prices over the course of
Dairy product consumption per capita dropped around the world as consumers increasingly sought out value by buying cheaper products and smaller packets and by reducing domestic food waste through better
use by dates. The economic and financial crisis which began to emerge in mid added further complexity to the dairy market picture. As income growth stalled in the face of recession, dairy product consumption contracted and global dairy prices fell dramatically in the
2008.
Outlook for the short to medium term
The report focuses on the global dairy product production and consumption outlook and how this is likely to evolve in the period to 2015.
In spite of the presence of milk production quotas, the EU dairy market is by an excess of production over consumption.
EU milk self-sufficiency was 109 per cent. Third country imports are small relative to total consumption and are
barriers, which protect the EU market and allow internal EU prices to exceed prices on the world market. Nevertheless, special import arrangements allow for a range of imports into the EU by other dairy exporters: New Zealand has 75,000
tonnes of cheese for processing and 7,000 tonnes of cheddar, all at reduced tariffs.
tonnes of cheese for processing and 3,711cheddar also at reduced tariffs, while Canada has 4,000 tonnes of cheddar, again at reduced tariffs. In addition to the above concessions, there are several non-country specific quotas for reduced import tariffs
tonnes of butter; 84,000 tonnes of assorted cheeses and tonnes of skimmed milk powder.
There are numerous bilateral trade arrangements between the EU and other countries, normally at zero duties.
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with unfavourable weather impacting production in Australia, New Zealand, Argentina and Ukraine, while some countries also placed restriction on exports to world markets
On the demand side, strong global consumption growth had been a
Rapid economic growth in developing economies and in crude oil exporting stimulated demand for dairy products. In addition, population
and the adoption of western eating habits
dairy producers temporarily experienced an income boom, as vely stable while milk prices increased. In addition,
decoupled compensation became available for the price drop that had
As energy costs rose and the development of the biofuels sector nput prices followed and in the latter half of
this offset the benefits for producers that the initial increase in dairy
The next stage in the process saw a negative reaction in consumer and dairy prices over the course of
Dairy product consumption per capita dropped around the world as consumers increasingly sought out value by buying cheaper products and smaller packets and by reducing domestic food waste through better
The economic and financial crisis which began to emerge in mid 2008,
As income growth stalled in the face of recession, dairy product dramatically in the
The report focuses on the global dairy product production and consumption
ence of milk production quotas, the EU dairy market is by an excess of production over consumption.
Third country imports are small relative to total consumption and are barriers, which protect the EU market and allow internal
Nevertheless, special import arrangements allow for a range of imports 75,000 tonnes of tonnes of
3,711 tonnes of tonnes of
riffs. In addition to the above concessions, country specific quotas for reduced import tariffs
tonnes of assorted cheeses and
al trade arrangements between the EU and
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These cover cheese from Norway and South Africa as well as miscellaneous
concessions to Switzerland, Turkey and ACP countries.
Exports subsidies have been used by the EU
excess production to third countries at prices that are lower than internal EU
prices. Intervention is used at times of market weakness to remove additional
volumes from the market when consumption is depressed.
The Mid Term Review (MTR) of the CAP and the Health Check which
reduced the level of intervention support and set in train a process of milk
quota removal.
Some 40 per cent of the EU milk supply is used for cheese produc/on and a
further 30 per cent is used
These two product areas have been the drivers of growth in dairy
consump/on in the EU over the last decade. The remaining 30 per cent of EU
milk production is mainly used in the manufacture of butter, powders and
casein.
Due to higher than anticipated international demand, it has only been in the
la1er half of 2008 and into 2009 that producer prices have fallen below the
price levels that prevailed at the time of the MTR negotiations.
The decrease in producer milk prices in 200
monthly milk production around the EU.
In spite of the increases in the EU milk quota the monthly production profile
in the 2008/09 quota year is only slightly ahead of the 2008/09 quota level.
Weak domestic consumption and expo
extended intervention measures and a restoration of dairy export subsidies,
which had been set to zero by the EU Commission in 2007.
Within the EU the impact of the recession and the downturn in international
dairy prices is being felt at present and EU intervention stocks are building.
EU bu1er stocks at almost 80,00 tones are equivalent to about 4 per cent of
EU annual produc/on, while EU skimmed milk powder stocks at 250,000
tonnes are close to 30 per cent of annual E
The impact of intervention purchases and export
term is to prevent an even greater decline in EU producer milk prices.
However, stockpiled intervention products have to be released to the market
at some future point.
The EU Commission's selling off strategy for these stocks will influence
market prices over the short term.
The short term outlook for the EU dairy sector is that production will be
below milk quota in 2009/10, that stocks will con/nu
rest of calendar year 2009, and that any recovery in EU prices is likely to be
very gradual.
The presence of substantial intervention stocks will delay the recovery in EU
prices, even when international prices begin to rise.
Depending on the supply response to the current low prices this situation
may persist into 2010.
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These cover cheese from Norway and South Africa as well as miscellaneous
concessions to Switzerland, Turkey and ACP countries.
Exports subsidies have been used by the EU to make it possible to export
excess production to third countries at prices that are lower than internal EU
prices. Intervention is used at times of market weakness to remove additional
volumes from the market when consumption is depressed.
Review (MTR) of the CAP and the Health Check which
reduced the level of intervention support and set in train a process of milk
Some 40 per cent of the EU milk supply is used for cheese produc/on and a
further 30 per cent is used in fresh dairy products.
These two product areas have been the drivers of growth in dairy
consump/on in the EU over the last decade. The remaining 30 per cent of EU
milk production is mainly used in the manufacture of butter, powders and
higher than anticipated international demand, it has only been in the
la1er half of 2008 and into 2009 that producer prices have fallen below the
price levels that prevailed at the time of the MTR negotiations.
The decrease in producer milk prices in 2008/09 has had an impact on
monthly milk production around the EU.
In spite of the increases in the EU milk quota the monthly production profile
in the 2008/09 quota year is only slightly ahead of the 2008/09 quota level.
Weak domestic consumption and exports in 2008 and 2009 have led to
extended intervention measures and a restoration of dairy export subsidies,
which had been set to zero by the EU Commission in 2007.
Within the EU the impact of the recession and the downturn in international
is being felt at present and EU intervention stocks are building.
EU bu1er stocks at almost 80,00 tones are equivalent to about 4 per cent of
EU annual produc/on, while EU skimmed milk powder stocks at 250,000
tonnes are close to 30 per cent of annual EU produc/on (August 2009).
The impact of intervention purchases and export subsidization
term is to prevent an even greater decline in EU producer milk prices.
However, stockpiled intervention products have to be released to the market
some future point.
The EU Commission's selling off strategy for these stocks will influence
market prices over the short term.
The short term outlook for the EU dairy sector is that production will be
below milk quota in 2009/10, that stocks will con/nue to feature through the
rest of calendar year 2009, and that any recovery in EU prices is likely to be
The presence of substantial intervention stocks will delay the recovery in EU
prices, even when international prices begin to rise.
ending on the supply response to the current low prices this situation
may persist into 2010.
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These cover cheese from Norway and South Africa as well as miscellaneous
to make it possible to export
excess production to third countries at prices that are lower than internal EU
prices. Intervention is used at times of market weakness to remove additional
Review (MTR) of the CAP and the Health Check which followed
reduced the level of intervention support and set in train a process of milk
Some 40 per cent of the EU milk supply is used for cheese produc/on and a
These two product areas have been the drivers of growth in dairy
consump/on in the EU over the last decade. The remaining 30 per cent of EU
milk production is mainly used in the manufacture of butter, powders and
higher than anticipated international demand, it has only been in the
la1er half of 2008 and into 2009 that producer prices have fallen below the
price levels that prevailed at the time of the MTR negotiations.
8/09 has had an impact on
In spite of the increases in the EU milk quota the monthly production profile
in the 2008/09 quota year is only slightly ahead of the 2008/09 quota level.
rts in 2008 and 2009 have led to
extended intervention measures and a restoration of dairy export subsidies,
Within the EU the impact of the recession and the downturn in international
is being felt at present and EU intervention stocks are building.
EU bu1er stocks at almost 80,00 tones are equivalent to about 4 per cent of
EU annual produc/on, while EU skimmed milk powder stocks at 250,000
U produc/on (August 2009).
over the short
term is to prevent an even greater decline in EU producer milk prices.
However, stockpiled intervention products have to be released to the market
The EU Commission's selling off strategy for these stocks will influence
The short term outlook for the EU dairy sector is that production will be
e to feature through the
rest of calendar year 2009, and that any recovery in EU prices is likely to be
The presence of substantial intervention stocks will delay the recovery in EU
ending on the supply response to the current low prices this situation
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A higher than average annual reduction in the EU dairy cow herd could tighten supplies, but it is not clear for how long producers in financial difficulty will try to persevere in the current downturn. To some extent this will depend on their own resolve, but the willingness of banks to advance credit in a tight cashflow situation will also be a consideration.
Projected Evolution of EU Milk Production
Projections point to a decrease in milk production in the short term (although possibly less than suggested in the OECD projections above) followed by a medium term recovery, but prices are likely to be weaker than the levels projected in advance of the econom
Over the period to improve and EU milk production should keep pace with the annual milk quota increases agreed in the Health Check.
The trend of declining milk production in southern Europe andmaintenance of production at quota levels in much of northern Europe will continue.
Growth in EU cheese and fresh product consumption, the drivers of growth in the EU dairy sector, will be weak due to lower income growth prospects. EU dairy export commay find it politically difficult to eliminate export subsidies.
The European Commission view is that the elimination of export subsidies is a realistic objective as the EU butter surplus will decline ovto 2015 due to lower levels of butter production and greater production of cheese and higher value added products. This perspective is consistent with a view that intervention and export subsidies will not be required in the future.
However, this view of how the EU market will evolve is not consistent with the opinion of some market experts who consider that the EU butter surplus will continue into the future, as EU butter production will not decline to the extent envisaged by the European Co
The basis for this view is an expectation of
due to the increased production of lower fat dairy products in the EU.
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A higher than average annual reduction in the EU dairy cow herd could tighten supplies, but it is not clear for how long producers in financial
try to persevere in the current downturn. To some extent this will depend on their own resolve, but the willingness of banks to advance credit in a tight cashflow situation will also be a consideration.
Projected Evolution of EU Milk Production
ections point to a decrease in milk production in the short term (although possibly less than suggested in the OECD projections above) followed by a medium term recovery, but prices are likely to be weaker than the levels projected in advance of the economic crisis. Over the period to 2015, EU milk production should recover as prices improve and EU milk production should keep pace with the annual milk quota increases agreed in the Health Check. The trend of declining milk production in southern Europe andmaintenance of production at quota levels in much of northern Europe will
Growth in EU cheese and fresh product consumption, the drivers of growth in the EU dairy sector, will be weak due to lower income growth prospects. EU dairy export competitiveness will need to recover by 2013may find it politically difficult to eliminate export subsidies.
The European Commission view is that the elimination of export subsidies is a realistic objective as the EU butter surplus will decline ov
due to lower levels of butter production and greater production of cheese and higher value added products. This perspective is consistent with a view that intervention and export subsidies will not be required in
this view of how the EU market will evolve is not consistent with the opinion of some market experts who consider that the EU butter surplus will continue into the future, as EU butter production will not decline to the extent envisaged by the European Commission.
The basis for this view is an expectation of increased availability of butter fat
due to the increased production of lower fat dairy products in the EU.
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A higher than average annual reduction in the EU dairy cow herd could tighten supplies, but it is not clear for how long producers in financial
try to persevere in the current downturn. To some extent this will depend on their own resolve, but the willingness of banks to advance credit in a tight cashflow situation will also be a consideration.
ections point to a decrease in milk production in the short term (although possibly less than suggested in the OECD projections above) followed by a medium term recovery, but prices are likely to be weaker
EU milk production should recover as prices
improve and EU milk production should keep pace with the annual milk
The trend of declining milk production in southern Europe and the maintenance of production at quota levels in much of northern Europe will
Growth in EU cheese and fresh product consumption, the drivers of growth in the EU dairy sector, will be weak due to lower income growth prospects.
2013 or the EU
The European Commission view is that the elimination of export subsidies is a realistic objective as the EU butter surplus will decline over the period
due to lower levels of butter production and greater production of cheese and higher value added products. This perspective is consistent with a view that intervention and export subsidies will not be required in
this view of how the EU market will evolve is not consistent with the opinion of some market experts who consider that the EU butter surplus will continue into the future, as EU butter production will not
mmission.
increased availability of butter fat
due to the increased production of lower fat dairy products in the EU.
The Egyptian Center for Studies of Export & Import
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United States
In general, import barriers have limited dairy trade with the US. To a lextent the US has been more or less self sufficient in dairy products and has not traditionally had a sizeable exportable surplus.
However, a characteristic of US dairy markets over the last four or five years has been that production has grown at a consumption.
The growth in US dairy consumption has been running at about one per cent per annum, while production has grown by
This has created an exportable milk surplus of around three to five million tonnes of milk.
The origins of the US dairy export surplus were high margins as illustrated in the high US income over feed cost (IOFC) on dairy farms which prompted strong growth in US milk production.
It is important to note also that the US dairy exports to thare less reliant on export subsidies than are dairy exports from the EU.
The recent weakness of the US dollar relative to the currencies of other key exporters has aided the competitiveness of US dairy exports.
The farm scale of US milk p While the average herd size is herds in excess of
At the current rate of progress just of US milk production.
The emergence of these large operations suggests that this may now be the most economic means of producing milk in the US.
The expansion of large scale operations may be constrained in the future by environmental concerns, or a lack of access to water or the unavailability of low cost labour.
In reaction to the current low level of milk prices, the US government has subsidised exports and has announced that it will raise US support prices from August through to October
Evolution of US Milk Production
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In general, import barriers have limited dairy trade with the US. To a lextent the US has been more or less self sufficient in dairy products and has not traditionally had a sizeable exportable surplus. However, a characteristic of US dairy markets over the last four or five years has been that production has grown at a faster rate than
The growth in US dairy consumption has been running at about one per while production has grown by 2.5 per cent per annum
This has created an exportable milk surplus of around three to five million
The origins of the US dairy export surplus were high margins as illustrated in the high US income over feed cost (IOFC) on dairy farms which prompted strong growth in US milk production.
It is important to note also that the US dairy exports to the world market are less reliant on export subsidies than are dairy exports from the EU. The recent weakness of the US dollar relative to the currencies of other key exporters has aided the competitiveness of US dairy exports.
The farm scale of US milk production has been growing rapidly. While the average herd size is 120 cows, the emergence of large scale herds in excess of 2,000 cows continues. At the current rate of progress just 500 farms will soon produce one third of US milk production.
gence of these large operations suggests that this may now be the most economic means of producing milk in the US. The expansion of large scale operations may be constrained in the future by environmental concerns, or a lack of access to water or the
ailability of low cost labour. In reaction to the current low level of milk prices, the US government has subsidised exports and has announced that it will raise US support prices from August through to October 2009.
Evolution of US Milk Production
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In general, import barriers have limited dairy trade with the US. To a large extent the US has been more or less self sufficient in dairy products and
However, a characteristic of US dairy markets over the last four or five faster rate than
The growth in US dairy consumption has been running at about one per per cent per annum.
This has created an exportable milk surplus of around three to five million
The origins of the US dairy export surplus were high margins as illustrated in the high US income over feed cost (IOFC) on dairy farms which
e world market are less reliant on export subsidies than are dairy exports from the EU. The recent weakness of the US dollar relative to the currencies of other key exporters has aided the competitiveness of US dairy exports.
roduction has been growing rapidly. the emergence of large scale
farms will soon produce one third
gence of these large operations suggests that this may now be
The expansion of large scale operations may be constrained in the future by environmental concerns, or a lack of access to water or the
In reaction to the current low level of milk prices, the US government has subsidised exports and has announced that it will raise US support prices
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The short term dairy outlook in the US is not good from a US dairy farming perspective and the consensus is that US production will contract slightly in 2009 and 2010
The outlook over the medium term will depend on a recovery in milk prices and affordable
More modest production growth of the period to 2015for consumption on the home market.
Exchange rate movements will impact on international compeand the weak outlook for the US dollar will create an environment to support US dairy exports.
Australia
There is a strong view that the recovery in the Australian dairy sector will be very weak.
The importance of access to water for the Austrbe understated.
Drought conditions have been an ongoing problem for producers in Australia over the last decade.
Access to irrigation water has become a key concern and has affected both yields and herd investment decisions in A
In Northern Victoria, urban areas are taking precedence over agriculture and water allocations are being redirected to towns in the region.
Water stocks in the Murrayrights will continue to be restrict
Estimates suggest that it may take a full decade to replenish these water reserves.
Milk production in Australia has now begun to show a recovery for the first time in a number of yearsexports remain sig
Drought conditions have caused some producers to exit and many of those that remain have reduced their herd size.
Projections suggest that milk production in Australia will not recover to its 2002 peak until 2015
New Zealand
New Zealand (NZ) per cent of its milk production being exported.
New Zealand production has not been affected to the same degree as Australia, but adverse weather conditions still demuch as three per cent in the on export capacity.
NZ milk production recovered well in the year eight per cent ahead of the
Commentators expecmedium term.
This growth will be driven on the one hand by increasing yields, through increased feed supplementation, while farm conversions to dairying from sheep finishing on the South Island will cfor dairy cows.
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he short term dairy outlook in the US is not good from a US dairy farming perspective and the consensus is that US production will contract slightly
. The outlook over the medium term will depend on a recovery in milk prices and affordable feed costs. More modest production growth of 5 to 6 million tonnes is achievable in
2015 and this will be mainly channelled to cheese production for consumption on the home market. Exchange rate movements will impact on international compeand the weak outlook for the US dollar will create an environment to support US dairy exports.
There is a strong view that the recovery in the Australian dairy sector will
The importance of access to water for the Australian dairy sector cannot
Drought conditions have been an ongoing problem for producers in Australia over the last decade. Access to irrigation water has become a key concern and has affected both yields and herd investment decisions in Australia. In Northern Victoria, urban areas are taking precedence over agriculture and water allocations are being redirected to towns in the region. Water stocks in the Murray-Darling Basin remain low and water access rights will continue to be restricted. Estimates suggest that it may take a full decade to replenish these water
Milk production in Australia has now begun to show a recovery for the first time in a number of years, up two percent in 2008/09, but the countryexports remain significantly below those of a decade ago. Drought conditions have caused some producers to exit and many of those that remain have reduced their herd size. Projections suggest that milk production in Australia will not recover to its
2015.
) is the largest dairy exporter in the world, per cent of its milk production being exported. New Zealand production has not been affected to the same degree as Australia, but adverse weather conditions still depressed production by as much as three per cent in the 2007/08 milk year, with a resultant impact on export capacity. NZ milk production recovered well in the 2008/09 year and finished the year eight per cent ahead of the 2007/08 year. Commentators expect NZ production to continue to grow over the short to
This growth will be driven on the one hand by increasing yields, through increased feed supplementation, while farm conversions to dairying from sheep finishing on the South Island will continue to provide additional land
� و ا�����اد��� ا ��آ� ا ���ى �را��ت ا
he short term dairy outlook in the US is not good from a US dairy farming perspective and the consensus is that US production will contract slightly
The outlook over the medium term will depend on a recovery in milk
million tonnes is achievable in and this will be mainly channelled to cheese production
Exchange rate movements will impact on international competitiveness and the weak outlook for the US dollar will create an environment to
There is a strong view that the recovery in the Australian dairy sector will
alian dairy sector cannot
Drought conditions have been an ongoing problem for producers in
Access to irrigation water has become a key concern and has affected both
In Northern Victoria, urban areas are taking precedence over agriculture and water allocations are being redirected to towns in the region.
Darling Basin remain low and water access
Estimates suggest that it may take a full decade to replenish these water
Milk production in Australia has now begun to show a recovery for the first but the country's
Drought conditions have caused some producers to exit and many of those
Projections suggest that milk production in Australia will not recover to its
, with over 95
New Zealand production has not been affected to the same degree as pressed production by as with a resultant impact
year and finished the
t NZ production to continue to grow over the short to
This growth will be driven on the one hand by increasing yields, through increased feed supplementation, while farm conversions to dairying from
ontinue to provide additional land
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At present dairy cow numbers are falling on the North Island. The average annual rate of NZ milk production growth since per cent.
However, it is considered that expansion will bdecade than in the current decade and that production growth rates will be lower as a result.
Consequently growth of term with growth easing back to
Given the grass based production system in NZ, weather can be expected to exert an impact on production, which will add further variability around these average annual growth rates.
While the NZ milk production system retains its very low cost, grass based focus, there is evidence of a trend towards increased concentrate feed and
In this context, milk and feed price relativities will become more important and this may have negative implicaelements of the NZ dairy sector in periods when milk prices are low.
In international trade terms, exchange rate movements are of critical importance for the New Zealand dairy sector.
The NZ dollar has appreciated by almosince the beginning of
This has impacted on the competitiveness of the country's exports and further depressed world dairy price when expressed in NZ dollars terms.
Overall, barring adverse weather, it would seemmaintain its position as the leading dairy exporter. Export growth will continue, albeit at a declining rate.
South America
South America is growing in importance as a dairy exporting region. Aside from the US, over the last five ythe largest growth in net exports of dairy products.
When South American dairy processors seek to export further afield, their export market tends to be Africa rather than Asia.
In turn this puts South American daiEU dairy exports to markets in Africa. South American dairy exports are less likely to compete directly with New Zealand exports to dairy markets in Asia.
Brazil
Traditionally Brazil was a net importer of dairy produexports have grown through the decade and Brazil has had a net export position in dairy products since
Whether Brazil continues to increase its net exports will depend not alone on its production growth, but also on the expansioconsumption.
Economic growth in Brazil will occur at a higher rate than in more developed economies and this will mean that consumption growth should be strong.
Reduced income inequality and the growth in the size of the Brazilian middle class should also aid the growth in the consumption of dairy products. Some projections indicate that the production growth will accelerate further in the period to to 2000 is possible
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At present dairy cow numbers are falling on the North Island. The average annual rate of NZ milk production growth since 1990 has been about four
However, it is considered that expansion will be more costly in the coming decade than in the current decade and that production growth rates will be lower as a result. Consequently growth of 3 percent per annum is possible over the short term with growth easing back to 1 percent per annum by 2015iven the grass based production system in NZ, weather can be expected
to exert an impact on production, which will add further variability around these average annual growth rates. While the NZ milk production system retains its very low cost, grass based focus, there is evidence of a trend towards increased utilizationconcentrate feed and fertilizer and this is impacting on production costs. In this context, milk and feed price relativities will become more important and this may have negative implications for the resilience of some elements of the NZ dairy sector in periods when milk prices are low.In international trade terms, exchange rate movements are of critical importance for the New Zealand dairy sector. The NZ dollar has appreciated by almost 20 per cent against the US dollar since the beginning of 2009. This has impacted on the competitiveness of the country's exports and further depressed world dairy price when expressed in NZ dollars terms.Overall, barring adverse weather, it would seem that New Zealand will maintain its position as the leading dairy exporter. Export growth will continue, albeit at a declining rate.
South America is growing in importance as a dairy exporting region. Aside from the US, over the last five years Brazil and Argentina have recorded the largest growth in net exports of dairy products. When South American dairy processors seek to export further afield, their export market tends to be Africa rather than Asia. In turn this puts South American dairy exports in direct competition with EU dairy exports to markets in Africa. South American dairy exports are less likely to compete directly with New Zealand exports to dairy markets
Traditionally Brazil was a net importer of dairy products. Brazilian dairy exports have grown through the decade and Brazil has had a net export position in dairy products since 2004. Whether Brazil continues to increase its net exports will depend not alone on its production growth, but also on the expansion of Brazilian dairy
Economic growth in Brazil will occur at a higher rate than in more developed economies and this will mean that consumption growth should
Reduced income inequality and the growth in the size of the Brazilian iddle class should also aid the growth in the consumption of dairy
Some projections indicate that the production growth will accelerate further in the period to 2015 and by then a doubling of production relative
is possible.
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At present dairy cow numbers are falling on the North Island. The average has been about four
e more costly in the coming decade than in the current decade and that production growth rates will be
percent per annum is possible over the short 2015.
iven the grass based production system in NZ, weather can be expected to exert an impact on production, which will add further variability around
While the NZ milk production system retains its very low cost, grass based utilization of
and this is impacting on production costs. In this context, milk and feed price relativities will become more important
tions for the resilience of some elements of the NZ dairy sector in periods when milk prices are low. In international trade terms, exchange rate movements are of critical
per cent against the US dollar
This has impacted on the competitiveness of the country's exports and further depressed world dairy price when expressed in NZ dollars terms.
that New Zealand will maintain its position as the leading dairy exporter. Export growth will
South America is growing in importance as a dairy exporting region. Aside ears Brazil and Argentina have recorded
When South American dairy processors seek to export further afield, their
ry exports in direct competition with EU dairy exports to markets in Africa. South American dairy exports are less likely to compete directly with New Zealand exports to dairy markets
cts. Brazilian dairy exports have grown through the decade and Brazil has had a net export
Whether Brazil continues to increase its net exports will depend not alone n of Brazilian dairy
Economic growth in Brazil will occur at a higher rate than in more developed economies and this will mean that consumption growth should
Reduced income inequality and the growth in the size of the Brazilian iddle class should also aid the growth in the consumption of dairy
Some projections indicate that the production growth will accelerate and by then a doubling of production relative
The Egyptian Center for Studies of Export & Import
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Argentina
Government intervention has led to a loss of confidence among producers in Argentina and this has resulted in a stagnation in milk production in recent years.
High international prices boosted exports in This prompted inflationary pressureto the introduction of export taxes by the government.
Over the medium term production growth is projected to reallowing milk production to increase by 2015.
However, strong grwill absorb much of this increased milk production.
Argentina should be able to maintain its current level of net exportsperiod to 2015, but may not become a bigger player on the world market.
China
GDP in China is now ten times the level it was in market has become a major element of global consumption growth in dairy products over the last decade.
By 2015 Chinese whole milk powder consumption could reach almost times the level in
The expansion of Chinese milk production over the last decade has been extremely rapid. While it has not matched the pace of growth in dairy product consumption, it has meant that only some of the growth in Chinese dairy consumption has stimproducts.
Over the medium term Chinese imports of cheese and skimmed milk powder will increase, while the growth in Chinese exports of whole milk powder will continue.
The recent melamine contamination of infant formula increasing infant formula imports, and these import volumes should be maintained until such time as consumers' faith in indigenously produced infant formula is restored.
India
India is the world's largest milk producer and in absolute terin milk production over the medium term is projected to considerably exceed that of any other major milk producing region.
Animal productivity in India's traditional milk production regions continues to improve. However, consumption growth inthis increased milk production due to growing population, additional demand for value added products and increased incomes levels among the middle classes.
India's net trade in dairy products is unlikely to change considerably othe medium term.
Russia Commentators agree that milk production in Russia will recover over the medium term. Low yielding cows are being replaced by higher yielding imported stock and considerable government investment is being made in a new dairy cprogramme.
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Government intervention has led to a loss of confidence among producers in Argentina and this has resulted in a stagnation in milk production in
High international prices boosted exports in 2007 and 2008. This prompted inflationary pressure in the domestic dairy market and led to the introduction of export taxes by the government. Over the medium term production growth is projected to re-allowing milk production to increase by 20 per cent over the period to
However, strong growth in cheese and whole milk powder consumption will absorb much of this increased milk production. Argentina should be able to maintain its current level of net exports
period to 2015, but may not become a bigger player on the world market.
GDP in China is now ten times the level it was in 1980 and the Chinese market has become a major element of global consumption growth in dairy products over the last decade.
Chinese whole milk powder consumption could reach almost evel in 1998.
The expansion of Chinese milk production over the last decade has been extremely rapid. While it has not matched the pace of growth in dairy product consumption, it has meant that only some of the growth in Chinese dairy consumption has stimulated increased imports of dairy
Over the medium term Chinese imports of cheese and skimmed milk powder will increase, while the growth in Chinese exports of whole milk powder will continue. The recent melamine contamination of infant formula in China led to increasing infant formula imports, and these import volumes should be maintained until such time as consumers' faith in indigenously produced infant formula is restored.
India is the world's largest milk producer and in absolute terin milk production over the medium term is projected to considerably exceed that of any other major milk producing region. Animal productivity in India's traditional milk production regions continues to improve. However, consumption growth in India will absorb much of this increased milk production due to growing population, additional demand for value added products and increased incomes levels among the
India's net trade in dairy products is unlikely to change considerably othe medium term.
Commentators agree that milk production in Russia will recover over the medium term. Low yielding cows are being replaced by higher yielding imported stock and considerable government investment is being made in a new dairy c
� و ا�����اد��� ا ��آ� ا ���ى �را��ت ا
Government intervention has led to a loss of confidence among producers in Argentina and this has resulted in a stagnation in milk production in
. in the domestic dairy market and led
-emerge, per cent over the period to
owth in cheese and whole milk powder consumption
Argentina should be able to maintain its current level of net exports in the
period to 2015, but may not become a bigger player on the world market.
and the Chinese market has become a major element of global consumption growth in
Chinese whole milk powder consumption could reach almost 4
The expansion of Chinese milk production over the last decade has been extremely rapid. While it has not matched the pace of growth in dairy product consumption, it has meant that only some of the growth in
ulated increased imports of dairy
Over the medium term Chinese imports of cheese and skimmed milk powder will increase, while the growth in Chinese exports of whole milk
in China led to increasing infant formula imports, and these import volumes should be maintained until such time as consumers' faith in indigenously produced
India is the world's largest milk producer and in absolute terms its growth in milk production over the medium term is projected to considerably
Animal productivity in India's traditional milk production regions continues India will absorb much of
this increased milk production due to growing population, additional demand for value added products and increased incomes levels among the
India's net trade in dairy products is unlikely to change considerably over
Commentators agree that milk production in Russia will recover over the medium term. Low yielding cows are being replaced by higher yielding imported stock and considerable government investment is being made in a new dairy cattle breeding
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For food security reasons Russia would like to boost its self sufficiency in dairy products from just over 70target of 37 million tonnes has been set for whether this target will be achieved.
Global summary
Projected Milk Production Growth in Selected Regions
Russia and the other former Soviet republics (CIS) will remain the largest butter importers. Subwhole milk powder importing regions and imports are expected to grow substantially. Mexico, Algeria and China should increase their imports of skimmed milk powder. Imports of cheese by Russia and Mexico in particular should increase over the period.
External factors Weather:
Weather events will continue to contribute to dairy product price volatility. Energy prices and input prices:
Rising energy prices will have an impact on dairy production costs and dairy demand. Exchange rates:
Exchange rate movements will impact on export competitiveness. Macro economic and population growth:
The rate of recovery in dairy demand will depend on the recovery in global economic growth.
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For food security reasons Russia would like to boost its self sufficiency in dairy 70 per cent at present to 95 per cent. A milk production
million tonnes has been set for 2012. There are mixed opinions as to whether this target will be achieved.
Projected Milk Production Growth in Selected Regions 2009
Russia and the other former Soviet republics (CIS) will remain the largest butter importers. Sub-Saharan Africa and Algeria will remain the main whole milk powder importing regions and imports are expected to grow substantially. Mexico, Algeria and China should increase their imports of skimmed milk powder. Imports of cheese by Russia and Mexico in
ld increase over the period.
Weather events will continue to contribute to dairy product price volatility.
Energy prices and input prices:
Rising energy prices will have an impact on dairy production costs and dairy
Exchange rate movements will impact on export competitiveness.
Macro economic and population growth:
The rate of recovery in dairy demand will depend on the recovery in global
� و ا�����اد��� ا ��آ� ا ���ى �را��ت ا
For food security reasons Russia would like to boost its self sufficiency in dairy A milk production ed opinions as to
2009 to 2018
Russia and the other former Soviet republics (CIS) will remain the largest a and Algeria will remain the main
whole milk powder importing regions and imports are expected to grow substantially. Mexico, Algeria and China should increase their imports of skimmed milk powder. Imports of cheese by Russia and Mexico in
Weather events will continue to contribute to dairy product price volatility.
Rising energy prices will have an impact on dairy production costs and dairy
The rate of recovery in dairy demand will depend on the recovery in global
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Agricultural policy and trade policy
Policy issues remain to be decided and will impact on the outlook for the dairy sector. Environmental policies and consumer preferences:
Environmental concerns will exert an increasing influence on agriculture, including the dairy sector. Renationalisation of dairy demand:
The renationalization of dairy demand would have an adverse impact on dairy exports. Nutrition and health agenda:
The health benefits of dairy product consumption may be undermined by legislation on labelling. Animal welfare concerns:
Animal welfare concerns related to food production continue to grow among consumers in the EU. It is not easy to consider how these concerns will evolve or how these concerns will impact on dairy trade.
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Agricultural policy and trade policy changes:
Policy issues remain to be decided and will impact on the outlook for the dairy
Environmental policies and consumer preferences:
Environmental concerns will exert an increasing influence on agriculture, including
enationalisation of dairy demand:
of dairy demand would have an adverse impact on dairy
Nutrition and health agenda:
The health benefits of dairy product consumption may be undermined by
l welfare concerns:
Animal welfare concerns related to food production continue to grow among consumers in the EU. It is not easy to consider how these concerns will evolve or how these concerns will impact on dairy trade.
� و ا�����اد��� ا ��آ� ا ���ى �را��ت ا
Policy issues remain to be decided and will impact on the outlook for the dairy
Environmental concerns will exert an increasing influence on agriculture, including
of dairy demand would have an adverse impact on dairy
The health benefits of dairy product consumption may be undermined by
Animal welfare concerns related to food production continue to grow among consumers in the EU. It is not easy to consider how these concerns will evolve or
The Egyptian Center for Studies of Export & Import
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l dairy trade Internationa
International dairy trade is primarily in butter, cheese and dry milk powders, with some trade in fluid milk products, ice cream, yogurt and dry whey products (ERS).
The United States produced 86,179 metric tonthan any other individual country.
Other major producers of milk in 27 countries of the European Union produced 134,34644,100 MT; ChinaWhich produced 32,500 Produced 15,141 MT
Nearly 11 percent of the milk and dairy products produced in the United States were shipped overseas in
U.S. exports of dairy products were valued at billion, up 26 percent from the previous yearvolume totaled 1.4(FAS).
The United Stated imported products in 2008, previous year. The products were valued at $3.1billion, an increase of
Like last year, the United States posted a trade surplus of dairy products; the value of exports totaled $700,000 more than the value of imports (FAS). November
New Zealand, Australia, and the EU are leading dairy exportin
countries/regions.
Low-cost producers in Australia and New Zealand are the principal suppliers of cheese and dry milk products to Asian markets, while subsidized EU producers focus on nearby markets in Africa, the Middle East, and Russia and export sigAmerica
As diets around the world have changed, so, too, has global demand for milk and dairy products.
The mix of products demanded, however, varies by region or country and the stage of a region’s economic developmen
The largest consumers of dairy products are high
countries, such as the U.S., EU, Australia, New Zealand, and Japan.
Middle-income developing countries use large quantities of dry milk powders for fluid milk reconstitution programs foods.
In low-income developing countries, demand is insignificant outside of food aid programs.
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l dairy trade 2008
International dairy trade is primarily in butter, cheese and dry milk powders, with some trade in fluid milk products, ice cream, yogurt and dry whey
The United States produced 190 billion pounds, or metric tons (MT), of milk in 2008, more
than any other individual country. Other major producers of milk in 2008 included the countries of the European Union (EU), which
134,346 MT; India, which produced China, which produced 36,700 MT; Russia,
32,500 MT; and New Zealand, which MT (FAS 2009).
percent of the milk and dairy products produced in the United States were shipped overseas in 2008 (USDEC).
exports of dairy products were valued at $3.8 percent from the previous year, and 1.4 million MT, up 13 percent.
The United Stated imported 730,167 MT of dairy , a decline of 9.5 percent from the
previous year. The products were valued at an increase of 9 percent.
Like last year, the United States posted a trade surplus of dairy products; the value of exports
more than the value of imports November 2009
New Zealand, Australia, and the EU are leading dairy exportin
cost producers in Australia and New Zealand are the principal suppliers of cheese and dry milk products to Asian markets, while subsidized EU producers focus on nearby markets in Africa, the Middle East, and Russia and export significant amounts of cheese to North
As diets around the world have changed, so, too, has global demand for milk and dairy products. The mix of products demanded, however, varies by region or country and the stage of a region’s economic development.
The largest consumers of dairy products are high-income developed
countries, such as the U.S., EU, Australia, New Zealand, and Japan.
income developing countries use large quantities of dry milk powders for fluid milk reconstitution programs and as ingredients in other
income developing countries, demand is insignificant outside of food aid programs.
� و ا�����اد��� ا ��آ� ا ���ى �را��ت ا
percent of the milk and dairy products produced in the United
New Zealand, Australia, and the EU are leading dairy exporting
cost producers in Australia and New Zealand are the principal suppliers of cheese and dry milk products to Asian markets, while subsidized EU producers focus on nearby markets in Africa, the Middle
nificant amounts of cheese to North
As diets around the world have changed, so, too, has global demand for
The mix of products demanded, however, varies by region or country and
income developed
countries, such as the U.S., EU, Australia, New Zealand, and Japan.
income developing countries use large quantities of dry milk and as ingredients in other
income developing countries, demand is insignificant outside of
The Egyptian Center for Studies of Export & Import
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These changes in global dairy markets are taking place in the context of significant market intervention by some of the world’sproduct importers and exporters.
Many countries maintain border and domestic support measures of various types for their dairy sectors
Dairy policies around the world are changing slowly, primarily as a result of the Uruguay Round of trad
The dominant border measures now in place are tariffs or tariffsystems, and they are at the core of many issues surrounding market access.
Domestic dairy policies include mainly price support and institutionalized pricing systems, policies that have been called trade distorting in many circles.
International Dairy Markets
International dairy trade is primarily in butter, cheese and dry milk
powders, with some trade in fluid milk products, ice cream, yogurt and
dry whey products.
The United States produced
(MT), of milk in 2008 more than any other individual country.
Other major producers of milk in
European Union (EU),
India, which produced
China, which produced
Russia, which produced
New Zealand, which produced
Milk production in Brazil, has been expanding at an average of over 6 percent annually 2008 period and is set to grow by Exports in 2009 are also anticipated to expand due to flat domestic consumption and increased competitiveness resulting from the expected further devaluation of the Brazilian currency.
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These changes in global dairy markets are taking place in the context of significant market intervention by some of the world’s leading dairy product importers and exporters. Many countries maintain border and domestic support measures of various types for their dairy sectors.
Dairy policies around the world are changing slowly, primarily as a result of the Uruguay Round of trade negotiations. The dominant border measures now in place are tariffs or tariffsystems, and they are at the core of many issues surrounding market
Domestic dairy policies include mainly price support and institutionalized ems, policies that have been called trade distorting in many
International Dairy Markets Outlook
International dairy trade is primarily in butter, cheese and dry milk
powders, with some trade in fluid milk products, ice cream, yogurt and
The United States produced 190 billion pounds, or 86,179 metric tons
more than any other individual country.
Other major producers of milk in 2008 included the 27 countries of the
, which produced 134,346 MT.
which produced 44,100 MT;
which produced 36,700 MT;
which produced 32,500 MT; and
which produced 15,141 MT (FAS 2009).
Milk production in Brazil, has been expanding at an percent annually over the 2006-
period and is set to grow by 5 percent in 2009.
are also anticipated to expand due to flat domestic consumption and increased competitiveness resulting from the expected further devaluation of the Brazilian currency.
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These changes in global dairy markets are taking place in the context of leading dairy
Many countries maintain border and domestic support measures of various
Dairy policies around the world are changing slowly, primarily as a result
The dominant border measures now in place are tariffs or tariff-rate quota systems, and they are at the core of many issues surrounding market
Domestic dairy policies include mainly price support and institutionalized ems, policies that have been called trade distorting in many
International dairy trade is primarily in butter, cheese and dry milk
powders, with some trade in fluid milk products, ice cream, yogurt and
metric tons
more than any other individual country.
countries of the
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Dairy outlook Cow numbers Milk yields Production Total milk – market sales – manufacturing Butter Cheese Whole milk powder Skim milk powder Farm-gate milk price Value of exports World prices Butter Cheese Skim milk powder Whole milk powder
COWS MILK: SUMMARY FOR SELECTED COUNTRIES
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2007-08 ’000 1 640
L/cow 5 624 ML 9 223
ML 2 188 ML 7 035
kt 128 kt 359 kt 142 kt 164
Ac/L 49.6 A$m 2 763
US$/t 4 027 US$/t 5 073 US$/t 4 204 US$/t 4 562
SUMMARY FOR SELECTED COUNTRIES 1,000 Metric Tons
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2008-09 1 645 5 702
9 380 2 240 7 140 150 348 141 208 40.0
2 724
2 483 3 271 2 329 2 548
Metric Tons
The Egyptian Center for Studies of Export & Import
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: SUMMARY FOR SELECTED COUNTRIES
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SUMMARY FOR SELECTED COUNTRIES 1/ 1,000
The Egyptian Center for Studies of Export & Import
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: SUMMARY FOR SELECTED COUNTRIES
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SUMMARY FOR SELECTED COUNTRIES 3/ 1,000
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