World Dairy Map 2011

Results of the IFCN Dairy Report 2010 www.ifcndairy.org

IFCN Ranking 2011 Top milk processors by milk intake
Rank Company name Country
New Zealand USA Switzerland USA The Netherlands France Denmark/Sweden France USA USA Germany Canada/USA USA France China Italy China India USA USA Australia

For a better understanding of milk production world-wide

National milk price vs world milk price developments

70
US-$ per 100 kg milk ECM

US-$ per 100 kg milk ECM

US-$ per 100 kg milk ECM

US-$ per 100 kg milk ECM

1 Fonterra 2 Dairy Farmers of America 3 Nestle 4 Dean Foods 5 Royal FrieslandCampina 6 Lactalis 7 Arla Foods 8 Danone 9 California Dairies Inc. 10 Kraft Foods 11 Nordmilch & Humana (DMK) 12 Saputo 13 Land O' Lakes Inc. 14 Sodiaal & Entremont alliance 15 Mengniu group 16 Parmalat 17 Yili group 18 Amul 19 Northwest Dairy Association 20 Schreiber Foods Inc. 21 Murray Goulburn Sum top 21

US-$ per 100 kg milk ECM

US-$ per 100 kg milk ECM

US-$ per 100 kg milk ECM

US-$ per 100 kg milk ECM

20 10 0 -10 -20
2006

20 10 0 -10 -20
2011 2006 2007 2008 2009 2010

20 10 0 -10 -20
2011 2006 2007 2008 2009 2010

20 10 0 -10 -20
2011 2006 2007 2008 2009 2010

US-$ per 100 kg milk ECM

international USA international USA The Netherlands international Denmark/Sweden international USA international Germany Canada/USA USA France China international China India USA USA Australia

20.5 17.1 14.9 11.8 10.3 10.2 8.7 8.0 7.7 7.5 6.7 6.2 5.8 4.2 3.8 3.7 3.7 3.4 3.3 3.3 3.2 163.9

3.0% 2.5% 2.2% 1.7% 1.5% 1.5% 1.3% 1.2% 1.1% 1.1% 1.0% 0.9% 0.9% 0.6% 0.6% 0.6% 0.5% 0.5% 0.5% 0.5% 0.5% 24%

50 40 30 20 10
2006 2007

50 40 30 20 10
2011 2006 2007 2008 2009 2010

50 40 30 20 10
2011 2006 2007 2008 2009 2010

50 40 30 20 10
2011 2006 2007 2008 2009 2010

US-$ per 100 kg milk ECM

Dairy processing plants main location

Milk intake in mill. t

Market share in % of world milk production

Germany

70 60

USA

70 60

Italy

70 60

Brazil

70 60 50 40 30 20 10

India

60

National milk price IFCN milk price indicator

2011 2008 2009 2010

2006

2007

2008

2009

monthly data

monthly data

monthly data

monthly data

monthly data

Distance of national milk price to world market milk price

30
national price > world market price

30

30

30

30 20 10 0 -10 -20
2006 2007 2008 2009 2010 2011

world market price > national price

Source: IFCN analysis is based on the IFCN Dairy Report 2010 and additional analyses and estimates. Data represents in most cases the year 2009 or 2010. Explanation: Milk intake represents milk volume collected, commodity purchase (in milk equivalents) and subsidiaries in other countries. Milk intake figures in mill. tons. In some cases recalculated from liter (1liter = 1.033 kg). Comments: Amul (India): milk with high fat content. Nordmilch and Humana merged in 2010 and created new company Deutsches Milchkontor (DMK). Sodiaal and Entremont alliance merged in 2011. Fonterra and Nestle incl. 50% of milk intake of Dairy Partners America (DPA) each. In some cases: double-counting of milk intake possible (companies purchase milk / dairy ingredients from each other).

2007

2008

2009

monthly data

2010

2011

-30

-30

-30

-30

-30

monthly data

monthly data

monthly data

monthly data

Milk production and share of milk delivered in 2009

Israel

South Africa

29 149 32
EU-27

81

40

27

124 10
Jordan

Bangladesh

10

Milk production 2009 in mill. t ECM = Energy corrected milk, 4% fat, 3.3% protein Delivered 2009 Not delivered 2009

39% of milk produced world wide is not delivered (cows and buffalos)

19

Data: Cows and buffalo milk production and milk delivered 2009 in mill t ECM. Source of data: National statistics, AMI, FAO, estimates for some countries. Share of milk delivered estimated for Venezuela, Jamaica, Sudan, Kirgizstan, Turkmenistan. Comment: NZ, AU, IN seasonal milk production, i.e. 2009 = season 2008/2009; seasons: NZ = Jun-May, AU = Jul-Jun, IN = Apr-Mar.

Indonesia

New Zealand

Returns of the dairy enterprise and decoupled payments

60 55 50 US-$ / 100 kg milk (ECM) 45 40 35 30 25 20 15 10 5 0 Western North Middle Europe America East Africa CEEC South Asia America Oceania Milk price Decoupled direct payments Coupled direct payments Cattle returns

Costs of milk production

70

Average cost of milk production in 2009 (Estimation by IFCN)

Average: blue Min. / Max.: orange

Top 20 dairy countries in 2009 - with EU-27 as aggregate

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Production in mill t ECM EU-27 India USA Pakistan China Russia Brazil New Zealand Ukraine Turkey Mexico Australia Argentina Iran Canada Egypt Japan Colombia Belarus Uzbekistan 2009 149.5 123.8 80.8 39.6 31.6 28.9 27.4 18.5 11.5 11.2 10.6 9.8 9.5 8.6 8.4 7.9 7.9 6.8 6.2 5.7 Milk delivered in mill t ECM EU-27 USA China Brazil New Zealand India Russia Australia Argentina Canada Japan Mexico Turkey Iran Colombia Pakistan Belarus Ukraine Switzerland South Africa 2009 135.0 80.3 29.3 19.3 18.5 15.0 14.2 9.5 8.9 8.1 7.8 7.2 6.7 6.4 5.3 4.7 4.7 4.1 3.5 2.6 Milk per farm ECM t/farm New Zealand Australia USA Israel Argentina South Africa Canada Japan Korea Jordan Uruguay Iceland Switzerland Norway EU-27 Chile Belarus Malaysia Nigeria Paraguay 2009 1,596 1,245 1,242 1,215 914 838 633 341 307 286 279 197 161 147 137 124 118 86 82 67

103

60 US-$ / 100 kg milk (ECM)

50

40

30

Cost of milk production (2009) US-$ / 100 kg milk (ECM) > 60 < = 120 > 50 < = 60 > 40 < = 50 > 30 < = 40 > 20 < = 30 < = 20 no data Indicator: Cost of milk production (excluding quota cost) of the average sized farms analysed in the countries.

20

10

0 Western North Middle Europe America East Africa CEEC South Asia America Oceania

Sources of data: Data for 2009. Production and milk delivered: National statistics, AMI, FAO, estimates for some countries. Milk per farm (dairy farm number): National statistics and estimates. If not available for 2009, 2008 farm number data was taken. Method: Production: cows, buffalos, sheep, goat, camel milk in mill t ECM. Delivered: Cow and buffalo milk in mill t ECM. Milk per farm: Milk production of cows and buffalos divided by number of dairy farms in t ECM per farm and year.

Agribusiness partners
These companies use the IFCN knowledge for their strategic planning:
Milk processing Milking equipment Animal health & hygiene Other branches of the dairy chain

Research partners / organisations participating

These researchers provided information in 2010 about their countries and use the global IFCN knowledge, its tools and the database for their research, teaching and farm advisory work.

Institutional partners
International Dairy Federation
Bangladesh Belarus Belgium

Afghanistan
Dairy farmer

Albania

Argentina
Dairy Expert

Armenia

Australia

Austria

Dairy Research Center

Bolivia

Brazil

Bulgaria

Cameroon

Canada

Chile

China

Colombia

Czech Republic

The IFCN
In a rapidly changing dairy world, the IFCN (International Farm Comparison Network) acts as an ongoing knowledge creation system. It represents 95% of milk production volume. Via a unique combination of partnerships, the IFCN represents the whole dairy chain from the farmers to the consumers.

ThE IFCN RESEARCh ACTIvITIES

Analysis on cost of milk production Sustainability of dairy farming Milk price analysis Dairy sector analysis Dairy policy analysis Dairy region development

Dairy Research Center

Denmark

Ecuador

Egypt

Ethiopia

Finland

France

Germany

Hungary

Iceland

Dairy Research Center

Indonesia

Iran

Iran

Ireland

Israel

Italy
Dairy farmer

Japan

Jordan

Kazakhstan

IFCN DAIRy REPoRT

The IFCN Dairy Report summarises the annual research work of the IFCN. The goal of the report is to show the global dairy developments of the whole world.

CoNTACT
Torsten Hemme torsten.hemme@ifcndairy.org www.ifcndairy.org

Animal Genetics
Korea, Republic of Latvia Lithuania Luxembourg Macedonia

Malaysia

Mexico

Nepal

The Netherlands

Feed Industrie
New Zealand
Dairy farmer

Nigeria

Norway

Pakistan

Paraguay

Peru

Philippines

Poland

Portugal

Romania

Russian Federation
Dairy Expert

Serbia

Slovakia

Slovenia

South Africa
Freelancer

Spain

Sri Lanka

Sweden

Forage production and machinery

Switzerland

Syria

Taiwan

Thailand

Tunisia

Turkey

Uganda

Ukraine

United Kingdom

Uruguay

USA

Uzbekistan

Vietnam

Brazil: Henrique Junquieira; China: Sam Shi; Germany: Annett Rindfleisch; USA: Bill Zweigbaum; UY: Jorge Alvarez.

The team in the IFCN Dairy Research Center in Kiel

IFCN Dairy Research Center 5/2011: All rights reserved.

2010

2011