The World Dairy Situation 20141
1
Summary report on IDF Bull. 476/2014 World Dairy Situation 2013 available from IDF www.fil.idf.org
Introduction
The 2014 World Dairy Situation report was published in November 2014. 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 83% of total milk production. It grew by 0,9% to 646 million
tonnes in 2013, slower than the 2,2% growth experienced during 2012. The major milk producing
countries are listed in Table 1.
Table 1: Cows milk production per country, 2013
Country
Milk production 2013
(mil. tonnes)
EU-28
154.0
United States
91.3
India
63.1
China
35.3
Brazil
34.4
Russia
30.3
New Zealand
20.2
Turkey
16.7
Pakistan
14.4
Argentina
11.5
Mexico
11.3
Ukraine
11.2
Source: IDF World Dairy Situation 2014
Share in total cows milk
production (%)
23.8
14.1
9.8
5.5
5.3
4.7
3.1
2.6
2.2
1.8
1.7
1.7
Annual growth 2012 –
2013 (%)
0.9
+0.3
+5.5
-5.7
+3.5
-3.9
-1.8
+4.2
+3.8
-1.4
+0.4
+1.0
Higher product and producer prices and more favourable production conditions resulted in faster
production growth in major exporting countries in 2014. Production growth during the first part of
2014 is shown in Table 2.
Table 2: Milk production growth in selected countries, 2014
Country
Australia
Belarus
Brazil
Canada
Chile
EU-28
Japan
Kazakhstan
Mexico
New Zealand
Russia
Switzerland
Turkey
USA
Uruguay
Source: IDF World Dairy Situation 2014
Period
Jan-July
Jan - Jul
Jan – Mar
Jan – Jun
Jan – Jun
Jan - Jul
Jan-Jun
Jan-Jul
Jan-Jul
Jan-Jun
Jan-Jul
Jan-Jun
Jan- Jun
Jan – Jul
Jan – Jul
Growth 2013 – 2014 (%)
+4.5
-0.3
+8.9
-1.8
-2.5
+5.1
-3.2
+2.2
+2.2
+16.3
-0.7
+4.8
+9.7
+1.7
-1.9
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 2013. Liquid milk
production increased by 2,3%, 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 2013.
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 2013. The 20 top dairy companies are shown in Table 3. Various mergers and acquisitions took
place during 2013 and in the first half of 2014.
Table 3: Major international dairy companies, 2012 & 2013
Rank
2013
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Company
Country
Lactalis
France
Nestlé
Switzerland
Danone
French
FrieslandCampina
Netherlands
Fonterra
New Zealand
Arla Foods
Denmark
DFA
USA
Dean Foods
USA
Saputo
Canada
Jili
China
Mengniu
China
DMK
Germany
Meiji Dairies
Japan
Sodiaal
France
Morinaga Milk
Japan
Industries
Bongrain
France
Müller
Germany
Schreiber
USA
Land O’ Lakes
USA
Glanbia Plc
Ireland
Source: IDF World Dairy Situation, 2014
Turnover (Bn US$)
2012
2013
20,2
21.2
19.8
18.7
15.0
15.7
13.2
15.1
15.8
15.1
10.9
13.1
12,1
12.8
11,5
9.0
7.2
8.8
6.7
7.8
5.7
7.1
5.7
7.1
7.5
6.4
5.6
6.1
7.2
6.0
5.2
----4.2
3.9
5.9
4.9
4.5
4.5
4.4
Dairy consumption
World total milk consumption increased by 1,3% 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.
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.
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, 42.3%
Europe, 26.2%
Source: IDF World Dairy Situation, 2014
Figure 2: Major international dairy exporters, 2000, 2013
19%
New Zealand
29%
EU
39%
24%
16%
Rest of world
USA
5%
Australia
5%
20%
15%
16%
3%
4%
Belarus
3%
3%
Argentina
0%
10%
20%
2000
Source: IDF World dairy situation, 2014
2013
30%
40%
50%