World Dairy Scenario in Brief

January 18, 2011

• The worldwide production of Buffalo milk is estimated
at 83 million tonnes constituting around 13
% of the total world milk production. It has increased
on an average by more than 3 % annually during
the last ten years. Almost 90 per cent of the total
volume is produced in India and Pakistan.
• A total production of 4.2 million tonnes of whole milk
and skim milk powder is expected. In the first half
of 2008, the production of EU was boosted by strong
export commitments, and relatively high prices.
• Mexico, one of the world’s largest importers of milk
powder, will show limited gains due to high feed
cost. In United States, dairy sector has responded
significantly to attractive internal and external prices
in the last two years. In Canada, higher feed cost
has limited domestic market growth.
• Over this decade, the U.S production of Skimmed
milk powder(SMP) increased by 40 % or 2, 00,000
tonnes, while Argentina and Brazil have nearly doubled
their production. India continues to show an impressive
growth in this area.
• Skim milk powder exports are expected to rise to
1.263 million tonnes, 10 % higher than the previous
year, particularly due to increased export from U.S.,
which would be at record 400,000 tonnes. Exports
from New Zealand, Australia and European Union
are anticipated to decrease marginally. Imports to
both African and Asian countries are expected to
increase, stimulated by much lower prices.
World Scenario of Milk & Milk Products
(2001 to 2007)
(‘000 tonnes)
Product 2001 2002 2003 2004 2005 2006(E) 2007(E)
Milk Production 79490 81350 82952 85431 87522 91830 95530
Butter Production 38 37 24 42 36 36 36
Butter (Imports) – 8 5 4 1 – -
World Milk Supply and Demand Estimates
(May 2009)
• Milk production is forecasted to decline in 2010
as the sector responds to weak 2009 returns. Cow
numbers are forecasted to decline and milk per
cow is expected to improve slightly in 2010.
• Domestic disappearance of fat and skim solids will
reflect tightening supplies and improved exports.
Product prices will be higher as demand improves
and supplies tighten. Cheese and Whey prices are
forecasted to rise above 2009.
• In 2010, all milk prices are forecasted at $14.70
to $15.70 per cwt. Commercial exports are forecasted
to increase as the Global economy improves
in future.

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