By Bob Yonkers, Ph.D., IDFA Chief Economist
The International Dairy Federation (IDF) last month released its World Dairy Situation 2011 report during the World Dairy Summit in Parma, Italy. This annual report highlights global trends in farm milk production, dairy processing and world trade in dairy products and brings strategic insights about the growing and dynamic world dairy market for use by producers of farm milk, dairy product manufacturers and end users of dairy products around the globe.
World farm milk production from all species of animals in 2010 grew by 1.8 percent. Milk from dairy cows, which represents 83 percent of the world total farm milk production of 721 million metric tons (mmt), grew by 1.6 percent in 2010, while buffalo milk production grew by 3.1 percent (and accounts for 13 percent of total world farm milk production). This growth in farm milk resulted in increases in world processed production of all major dairy products.
After decreasing slightly in 2009, global per capita milk and dairy production grew by 1 percent in 2010 to average 104.6 kilograms (milk equivalent). World regions with the largest share of world milk consumption include Asia (39 percent of global dairy consumption), Europe (29 percent) and North America (13 percent). However, according to the IDF report, South America experienced the largest rate of growth in dairy consumption followed by Asia.
World trade in dairy products continues to grow and in 2010 accounted for over 7 percent of farm milk production, or 51.9 mmt. This was an increase of 9 percent above the previous year. Most of these dairy products in world trade came from the top 4 exporters, with the European Union, New Zealand, United States and Australia accounting for 73 percent of world dairy exports.
World dairy market prices in 2010 and early 2011 recovered from the lower levels seen in late 2008 and early 2009. IDF reports that farm milk prices in the United States in 2010 were 27 percent higher than year-earlier and increased 22 percent in New Zealand and 15 percent in the European Union.
The full report includes many more details about world trends in milk production, processing, trade and consumption, as well as farm milk and wholesale dairy product prices. In addition, the chapter entitled “World Dairy Market Forum” includes detailed articles from leading world dairy experts on topics like “Trends in Milk Production Worldwide,” “Trade Barriers in the Dairy Sector,” and “Trends and Characteristics of Demand for Dairy Products in Developing Countries.” Finally, the report includes more detailed reports on the state of the dairy industry in 48 individual countries.