The World Dairy Situation
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1 The World Dairy Situation Summary report on IDF Bull. 476/2014 World Dairy Situation 2013 available from IDF
2 Introduction The 2014 World Dairy Situation report was published in November As always it provides a general survey of the global dairy industry in the previous year. The complete report is available from the International Dairy Federation. In this article a general overview of the report is provided. Milk Production Cows milk production represents 8 of total milk production. It grew by 0,9% to 646 million tonnes in 2013, slower than the 2,2% growth experienced during The major milk producing countries are listed in Table 1. Table 1: Cows milk production per country, 2013 Country Milk production 2013 (mil. tonnes) Share in total cows milk production (%) Annual growth (%) EU United States India China Brazil Russia New Zealand Turkey Pakistan Argentina Mexico Ukraine Source: IDF World Dairy Situation 2014 Higher product and producer prices and more favourable production conditions resulted in faster production growth in major exporting countries in Production growth during the first part of 2014 is shown in Table 2. Table 2: Milk production growth in selected countries, 2014 Country Period Growth (%) Australia Jan-July +4.5 Belarus Jan - Jul -0.3 Brazil Jan Mar +8.9 Canada Jan Jun -1.8 Chile Jan Jun -2.5 EU-28 Jan - Jul +5.1 Japan Jan-Jun -3.2 Kazakhstan Jan-Jul +2.2 Mexico Jan-Jul +2.2 New Zealand Jan-Jun Russia Jan-Jul -0.7 Switzerland Jan-Jun +4.8 Turkey Jan- Jun +9.7 USA Jan Jul +1.7 Uruguay Jan Jul -1.9 Source: IDF World Dairy Situation 2014
3 Dairy processing Four hundred and eight million tonnes of cows milk (63,2% of total production) was delivered to dairies for further processing. The EU processes the largest quantity of milk, followed by the United States, China, Brazil, New Zealand and Russia, with India not ranked. Milk delivered increased by 0,5% from 2012 to 2013 The total production of dairy products increased in Liquid milk production increased by 2,, butter production by 2,1%, cheese by 1,8%, full cream milk powder by 0,9%, while skimmed milk production decreased by 0,2%.. The production of dairy ingredients such as whey and caseins increased during Dairy industry In 2013 the turnover of most major dairy companies increased as global dairy product prices increased. Exceptions were the Japanese companies Meiji (-15%) and Morinaga (-16%). as well as New Zealand-based Fonterra (-4%). In the case of the Japanese companies the depreciation of the Yen played a major role. Fonterra s turnover was limited by the severe drought in New Zealand in The 20 top dairy companies are shown in Table 3. Various mergers and acquisitions took place during 2013 and in the first half of Table 3: Major international dairy companies, 2012 & 2013 Rank Turnover (Bn US$) Company Country Lactalis France 20, Nestlé Switzerland Danone French FrieslandCampina Netherlands Fonterra New Zealand Arla Foods Denmark DFA USA 12, Dean Foods USA 11, Saputo Canada Jili China Mengniu China DMK Germany Meiji Dairies Japan Sodiaal France Morinaga Milk Japan Industries 16 Bongrain France Müller Germany Schreiber USA Land O Lakes USA Glanbia Plc Ireland Source: IDF World Dairy Situation, 2014 Dairy consumption World total milk consumption increased by 1, in 2013 to 782 million tonnes. Strong demand has resulted in a further decrease in world stock levels that were already very low. The growth in dairy consumption is driven by higher per capita consumption and population growth. Asia accounts for a major share of total dairy consumption followed by the EU and North America. The percentage distribution of dairy consumption in 2013 is shown in Figure 1.
4 International dairy trade In 2013, 62,9 million tonnes in milk equivalent was traded between countries. This is 8% of total milk production. Trade growth has accelerated in recent years and will probably continue as the major consumer areas will not manage to produce enough milk for own use. Major dairy trading countries are shown in Figure 2. The share of the EU in total dairy trade continues to decrease while the share of New Zealand and the USA increases. Conclusion Global milk production is growing. The demand for dairy products is driven by population growth as well as the growth in per capita consumption. The major consumer countries will not be able to produce enough milk for own use in the next decade. The global market for dairy products will thus continue to grow.
5 Figure 1: Global dairy consumption per region, 2012 South America, 8.6% Africa, 7.1% Central America, 2.7% Oceania, 1.1% North America, 11.9% Asia, 42. Europe, 26.2% Source: IDF World Dairy Situation, 2014 Figure 2: Major international dairy exporters, 2000, 2013 New Zealand 19% 29% EU 24% 39% Rest of world 16% 20% USA 5% 15% Australia 5% 16% Belarus 4% Argentina 0% 10% 20% % % 50% Source: IDF World dairy situation, 2014
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