Open Access Subscription Access
Global Marketing Systems in the Dairy Sector: A Comparison of Selected Countries
This paper focuses on the global dairy sector in general, and milk marketing systems in particular. The dairy sector is multifunctional in nature, and contributes to sustainable agricultural development and food security. The global trade is dominated by developed countries, contributing to 62% of the imports and 92% of the exports. Global production and consumption are increasingly imposing pressure to produce and process more, keeping in the mind the aspects of quality and efficiency. The development of dairy markets is affected by access to milk markets and market distortions. Additionally, the development of dairy markets depends on the governments' involvement in regulating production and marketing of milk and milk products. In this regard, comparison of marketing systems across countries considering supply, demand, prices, and trade is important for a clear understanding of the complexities, performance, and challenges in the systems. The analysis indicates that although the production has increased over years in regulated (USA), deregulated (Australia), and informal (India) dominated milk markets, but consumption has increased only in the informal dominated markets. The processing is greater than 90% in Australia and USA, while this is only 18% in India, indicating backwardness of the Indian dairy sector. The farmers' share in consumers' basket is increasing in Australia, decreasing in USA, and is stable in India, representing a higher benefit to producers in deregulated markets and stability of the market in the informal sector dominated market. The milk prices are closer to the world market price in regulated markets as compared to the deregulated and informal markets, signifying higher regulation of production and marketing in USA. The self-sufficiency and performance of the Australian dairy sector is comparatively better because the dairy farms are competing in the international markets. The successful policy interventions in informal markets of Kenya and India indicates that these markets have the potential to improve income and employment, but impose constraints on quality and trade. These issues can be tackled by following an integrated approach in gradual conversion of informal to the formal sector through proper education and training, which has the potential for the overall development of the dairy industry.
Global Dairy Marketing Systems, Regulated, Deregulated, Informal Milk Markets, Trade
- Beghin, J.C. (2006). Evolving dairy markets in Asia: Recent ﬁndings and implications. Food Policy, 31 (3), 195 - 200.
- Dairy Australia. (2009). Deregulation. Retrieved from http://www.dairyaustralia.com.au/Our-Dairy-Industry/The-Australian-Dairy-Industry/Deregulation.aspx
- Datta, T. N., & Ganguly, B. K. (2002). Analysis of consumer expenditure pattern in states with special reference to milk and milk products (p. 20). National Information Network, NDDB (National Dairy Development Board).
- De Haan, C., Schillhorn, V.V.T., Bradenburg, B., Gauthier, J., Le Gall, F.,Mearns, R., Simeon, M. (2001). Livestock development: Implication for rural poverty, the environment and global food security (Vol. 1). Washington DC, USA: The World Bank.
- Douglas, G.H. (2007).Introduction to Dairy Science and Technology: Milk History, Consumption, Production, and Composition. Canada: University of Guelph.
- Du, L., Liu, F., & Huo, G. (2007). World dairy sector: A bright future promised. Trends in Food Science and Technology, 18 (11), 579-581.
- Edwards, G. (2003). The story of deregulation in the dairy industry. Australian Journal of Agricultural and Resource Economics, 47 (1), 75-98.
- European Court of Auditors (ECA) (2009). Have the management instruments applied to the market in milk and milk products achieved their main objectives? Special Report No 14/2009. Retrieved from http://eca.europa.eu/portal/pls/portal/docs/1/3096295.PDF
- Export Processing Zones Authority (EPZA) (2005). Dairy industry in Kenya 2005. Research Report, Nairobi, Kenya. Retrieved from http://www.centralbank.go.ke/cbk/FXrates/archives.html
- Gouin, D.- M. (2009). An international comparative analysis of the regulation in the dairy sector. WCDS Advances in Dairy Technology, 21 (3), 43-60.
- Hoveid, O., & Hammond, J. W. (1994). Comparative costs of dairy marketing in Norway and the U.S. Staff paper p94-22. Department of Agricultural and Applied Economics, College of Agriculture, University of Minnesota. Retrieved from http://ageconsearch.umn.edu/handle/13815
- IFCN (2009). Dairy Report 2008: For better understanding of milk production worldwide.
- ILRI and ODI. (2006). Case Study Brief No.1: Changes in dairy marketing policy in Kenya.Retrievedfrom http://www.pppppc.org/content/files/documents/Kenya%20CS%20brief%20final.pdf
- ILRI (2011). Towards priority actions for market development for African farmers. Proceedings of an international conference, Nairobi, Kenya, 13-15 May, 2009. Nairobi: AGRA and ILRI.
- Issar, G. S., Cowan, R. T., Woods, E. J. and Wegener, M.(2004). Dynamics of Australian dairy-food supply chain: strategic options for participants in a deregulated environment (pp. 458-464). Sixth International Conference on Chain and Network Management in Agribusiness and the Food Industry, Ede, the Netherlands, 27-28 May 2004, Wageningen Academic Publishers.
- Jachnik, P. (2006). The Dairy Value Chains and Comparative Marketing Systems: An Overview. Paper presented at FAO Symposium on the dairy value chains and comparative marketing systems. FAO, Rome, Italy. November 2006.
- Jesse, E. V., Dobson, W. D., Armentano, L. E.,Olson, N.F., & Sharma, V.P. (2006). The dairy sector of India: A country study. Babcock Institute Discussion Paper No. 2006-2. USA. Retrieved from http://ageconsearch.umn.edu/handle/37353
- Joe, P. (2009). Reflections on dairy development experiences in different continents. Paper presented at XXXVII Dairy Industry Conference, Goa, India, March 19 24, 2009.
- Karanja, A. M. (2003). The dairy industry in Kenya: The post-liberalization Agenda. Working Paper No.1. Agricultural, Food, and Resource Economics, Michigan University, USA. Retrieved from http://www.aec.msu.edu/fs2/kenya/o_papers/dairy_sector_color.pdf
- Knips, V. (2005). Developing countries and the global dairy sector - Part I global overview. PPLPI Working Paper No. 30, FAO, Rome, Italy. Retrieved from http://www.fao.org/ag/againfo/programmes/en/pplpi/docarc/wp30.pdf
- Ling, K. C. (2004). Marketing operations of dairy cooperatives 2002. RBS Research Report 201. USA: United States Department of Agriculture.
- Meeta, P. (2008). Emerging changes in the Indian dairy industry. FAO-APHCA/CFC Regional Workshop on Smallholder Dairy Development, Chiang Mai, Thailand. February 2008. Retrieved from http://www.aphca.org/reference/dairy/chiangmai_workshop_feb08.html
- Muriuki, H.G. (1992). Kenya national dairy development project. Future of livestock industries in East and Southern Africa . Proceedings of the Workshop held at Kadoma Ranch Hotel, Zimbabwe. 20th July 1992.Retrieved from http://www.fao.org/wairdocs/ILRI/x5485E/x5485e0o.htm
- Ngigi, M. (2005). The case of smallholder dairying in Eastern Africa. EPT Discussion Paper 131 (pp. 1- 108). Washington DC, USA: International Food Policy Research Institute (IFPRI). Washington DC, USA.
- Otte, J., & Mack, S. (2006). The dairy sector and poverty reduction: A FAO perspective. Paper presented at 7th IFCN conference, Szczecin, Poland, May 24, 2006. Retrieved from http://www.fao.org/ag/againfo////programmes/en/pplpi/docarc/pre060524_dairydvpt.pdf
- Pajic, M., Blandford, D., & Bailey, K. W. (2009). Implications of WTO tariff reductions for EU and US dairy policy. Working paper 09-1. International Agricultural Trade Research Consortium (IATRC). Retrieved from http://iatrc.software.umn.edu/publications/workingpapers/IATRCWorkingPaper09-1.pdf
- Phansalkar, S.J. (2006). Livestock-water interaction: Status and issues. Paper presented at 5th IWMI-Tata Annual Partners Meet, Gujarat, India. March 8- 10, 2006.
- Rajendran, K., & Samarendra, M. (2004). Dairy co-operatives and milk marketing in India: Constraints and opportunities. Journal of Food Distribution Research, 35 (2), 34-41.
- Sansoucy, R. (1995). Livestock: A driving force for food security and sustainable development. World Animal Review, 84/85 (1995), 5 - 17.
- South Australian Centre for Economic Studies (SACES). (2000). Deregulation of the Australian Dairy Industry: Chapter Seven. Issue papers. November 2000. Retrieved from http://www.adelaide.edu.au/saces/publications/issues/art1nov2000.pdf
- Staal, S. (2006). The role and future of informal and traditional dairy markets in developing Countries. Paper presented at FAO Symposium on the dairy value chains and comparative marketing systems. FAO, Rome, Italy, November 15, 2006.
- Thorpe, W., Muriuki, H.G., Omore, A., Owango, M.O., Staal, S. (2000). Dairy development in Kenya: the past, the present and the future. Paper presented at the Annual Symposium of the Animal Production Society of Kenya (APSK). Theme: Challenges to Animal Production in this Millennium, KARI Headquarters, Nairobi, March 22-23, 2000. Nairobi (Kenya): ILRI.
- Wolf, C. A., & Hamm, L. G. (1998). The role of cooperatives in milk marketing. American American Agricultural Economics Association, 1998 Annual meeting, August 2-5, 1998, Salt Lake City, UT. Retrieved from http://ageconsearch.umn.edu/handle/20899
- Yigrem, S., Beyene, F., Tegegne, A., Gebremedhin, B. (2008). ILRI, Nairobi (Kenya). Improving Productivity and Market Success of Ethiopian Farmers Project (IPMS), Hawassa University, Awassa (Ethiopia). Dairy production, processing and marketing systems of Shashemene-Dilla area, South Ethiopia. IPMS Working Paper 9. Nairobi: ILRI.
Abstract Views: 657