DAIRY ASIA: WHERE WE ARE? HOW WE GOT HERE? WHERE WE WANT TO GO? Nay Pyi Taw, November 8, 2017
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1 DAIRY ASIA: WHERE WE ARE? HOW WE GOT HERE? WHERE WE WANT TO GO? Nay Pyi Taw, November 8, 2017
2 Million t Large, growing and dynamic Asian dairy sector o o o o Dairy is the third most economically important agricultural commodity in Asia. Asia produced about 320 million tonnes of milk in 2014, accounting for 40% of total global milk production. Milk production in Asia is growing at more than twice the global rate of production (4.5% p.a. compared to 1.5% p.a.) Net import of 28 million tonnes of milk equivalent in 2015 in Asia at the cost of US$ 18 billion Global Milk Production Rest of the World Asia Source: FAOSTAT,
3 Large diversity Production Processing Retail 3
4 Large diversity Percentage milk processed in organized sector South Asia East Asia South-East Asia Per capita milk consumption per year (kg ME/capita) South Asia East Asia South-East Asia Average Source: Ahuja,
5 in Million t ME Market outlook o World milk production is projected to increase by 177 million tonnes by 2025 with about 73% of the growth anticipated to come from developing countries, especially Asia Dairy demand growth ( ) 126% o Demand will continue to outstrip production o Net import patterns will change 100 Increasing imports East Asia and Southeast Asia South Asia significant exporter by % 115% Large potential and positive market outlook but. East Asia South Asia South East Asia Sources: FAO; Staal, Ahuja, Hemme & Sharma, 2016; Robinson and Pozzi, 2011
6 Challenges for the dairy sector o Social concerns o Marginalization of smallholders o Food insecurity o Environmental concerns o Pollution o GHG Emission and climate change o Resource scarcity o Health concerns o Diseases o Food safety o AMR 6
7 Dairy for triple win 2. Potential for social and economic gains and a tool for poverty alleviation o 80% of dairy farmers in Asia are smallholders o Livestock more equally distributed than land o Livestock offers large multiplier o Employment opportunities: For every 100 l produced locally, up to 10 off-farm jobs are created o Off-farm expenditure o Large share of overall GDP Source: FAO,
8 3. Opportunities to improve the environmental sustainability of the sector GHG emissions Dairy for triple win With rising yields, the GHG emission intensity per kg milk decreases Source: Gerber et al.,
9 3. Opportunities to improve the environmental sustainability of the sector Water footprint Dairy for triple win o 1/3 of all agricultural water use comes from animal production o Milk has lowest water footprint of all livestock products o Although water footprint depends on production system Source: Gerber et al.,
10 Dairy Asia Towards Sustainability Bangkok May 2014
11 The road from Bangkok to Anand Drafting group for Regional Strategy Paper Peer Review Review by Dairy Asia Bangkok delegates Open e-consultation Final draft
12 The vision A socially and environmentally responsible Asian Dairy Sector that enhances rural livelihoods, improves nutrition, and contributes to economic prosperity.
13 The Strategic Objectives o Farm profitability and milk productivity. o Fair and efficient markets o Dairy food quality and safety. o Consumer education and school milk o Capacity to cope with risks and for greater innovation. o Environmental footprint and climate changes 11/8/
14 Dairy Asia: Towards Sustainability From Concept to Action March 23-26, 2015 Anand, India
15 The Anand process and outcomes o Review and adoption of the strategy paper o A Joint Communique o Consensus on the need and structure of Dairy Asia platform 11/8/
16 Dairy Asia: Core Functions 1. Facilitate knowledge and information exchange about dairy development across Asian countries 2. Support institutional development for dairy development in Asia 3. Support Policy and Strategy in support of dairy sector development in Asian countries 4. Advocate for and broker investment partnerships in dairy development 5. Facilitate collaborative R&D activities in support of sustainable dairy development 11/8/
17 Structure of Dairy Asia platform Dairy Asia 11/8/2017 Country Coordination Groups/ National Focal points Country A Country B Country C.. Dairy Genetics Steering Committee Technical Working Groups Dairy Economics & Policy Institutional Development Secretariat Other technical groups to be identified 17
18 Back to Bangkok: The Dairy Asia Writeshop 11/8/
19 Dairy Asia: The value proposition We are like no other independent, multi-stakeholder platform focused on dairy Cross learning, experience sharing, relationship building Platform for packaging and facilitating the exchange of knowledge and experience Exploiting the diversity of systems, scale, capacity, policies and experience of the Asia dairy sector for mutual benefits and more symbiotic development o Core values/consensus document o Membership criteria open, voluntary, not-price based 11/8/
20 Dairy Asia o Multi-stakeholder platform for dialogue and coordinated action o Finding common ground and aligning actions towards social, economic and environmental sustainability o Based within the Asian region but reaching out to partners around the globe.
21 National Focal Points Afghanistan Ministry of Agriculture, Irrigation and Livestock, Government of Afghanistan Bangladesh Department of Livestock Services, Government of the Republic Bangladesh Bhutan Department of Livestock, Government of Bhutan China Dairy Association of China India National Dairy Development Board Indonesia Directorate General of Livestock Services, Ministry of Agriculture Mongolia Food Production Policy Implementation and Coordination Department, Government of Mongolia Myanmar Ministry of Agriculture, Livestock and Irrigation, Government of Myanmar Nepal National Dairy Development Board Philippines National Dairy Authority Sri Lanka Department of Animal Production & Health, Government of Sri Lanka Thailand Department of Livestock Development, Government of Thailand Vietnam Vietnam Dairy Association
22 Partners Animal Production and Health Commission for Asia and the Pacific (APHCA) International Farm Comparison Network (IFCN) International Dairy Federation (IDF) 22
23 Aligning our work 23
24 Country Priorities Strategic Objective 1. Improving milk productivity and farm profitability 2. Integrate small-scale producers in the modern value Afghanistan Bangladesh Bhutan China India Indonesia Mongo-lia Myan-mar Nepal Sri Lanka Protect and enhance human health Enhance resilience and adaptability of dairy systems 5. Protect and restore terrestrial ecosystems 2 6. Combat climate change 3 7. Enhance levels of education 8. Promote gender equality 9. Improve access to clean affordable energy 10. Building national, regional and global platforms Philippines Thailand Vietnam
25 Action takes place at all levels Dairy Genetics Working Group o Dairy geneticists - one representative per Dairy Asia member country o Core functions of the working group: Information sharing policy advice Promoting SOP Facilitation of training programmes Promoting the exchange of genetic material 25
26 Action takes place at all levels Example of a bilateral collaboration Myanmar Dairy Association and Dairy Farming Promotion Organization of Thailand Mineral mixture supply
27 Action takes place at all levels Knowledge products Working paper series Request for a school milk experience collection
28 Dairy Asia meeting in Nay Pyi Taw o MSP meeting to take stock, obtain new commitments, agree on some regional public goods o Hosted by the Government of Myanmar 28
29 The agenda for today Key Questions: 1. Reflections on the Successes and Failures of Dairy Asia so far 2. Dairy Asia SWOT analysis Key Questions: 1. Develop tangible goals for Dairy Asia 5 years from now What do we want Dairy Asia to be? And how do we measure success? 2. Identify Key deliverables from Dairy Asia Key Questions: 1. Identify the key steps required to deliver these including ownership and associated responsibilities who brings what to the table? How the deliverables actually get delivered? And where do the resources come from? 29
30 11/8/2017 We have traversed a path few have dared to. We are continuing on a path still fewer have the courage to follow. We must pursue the path even fewer can dream to pursue. Yet, we must, because we hold in trust the aims and aspirations of millions of our countrymen Dr. Verghese Kurien 30
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