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Developing Countries and the Global Dairy Sector Part I Global Overview

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  • Knips, Vivien

Abstract

Globally, the dairy sector is probably one of the most distorted agricultural sectors: producer subsidies are in place in many developed countries, encouraging surplus production, export subsidies are paid by governments to place the excess production on the world markets, and tariff and non-tariff barriers are erected both by developed and developing countries to protect their dairy sector from 'unfair' competition. These market distortions are having significant and different impacts on producers and consumers in developing and developed countries, which are however extremely difficult to quantify. This paper is the first volume of a study on the impacts of global dairy trade on developing countries, giving an overview of global dairy production, consumption, industry structure, trade, applied policies and international standards. Different developments are occurring in the global dairy sector at the moment: Production in developed countries is falling (together with the number of dairy cows and farms), while productivity is rising. Simultaneously milk production in developing countries is growing strongly and numbers of cows are increasing. This development is mirrored in consumption. Dairy consumption levels in developed countries are constant or falling, whereas in many developing countries, foremost in East and Southeast Asia and driven by population growth and growing per capita incomes, dairy consumption is rapidly increasing. With consumer demand in developing countries rising faster than domestic production, global dairy trade volumes are increasing as well with import demand of developing countries being the major driver. In the second volume of the study, the dairy sectors of six developing countries (Bangladesh, Jamaica, Peru, Senegal, Tanzania and Thailand) will be analyzed in order to identify the impacts of (subsidized) milk powder imports on milk producers and consumers.

Suggested Citation

  • Knips, Vivien, 2005. "Developing Countries and the Global Dairy Sector Part I Global Overview," PPLPI Working Papers 23768, Food and Agriculture Organization of the United Nations, Pro-Poor Livestock Policy Initiative.
  • Handle: RePEc:ags:faopwp:23768
    DOI: 10.22004/ag.econ.23768
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    Cited by:

    1. Abdus Sattar, 2021. "What is Holding Back Milk Production Potential in Pakistan?," PIDE-Working Papers 2021:9, Pakistan Institute of Development Economics.
    2. Hana Doležalová & Kamil Pícha & Josef Navrátil & Aneta Bezemková, 2014. "Factors That Influence the Selling of Milk Through Milk Vending Machines," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 62(4), pages 641-650.
    3. Magdana Kondaridze & Jeff Luckstead, 2023. "Determinants of dairy‐product trade: Do subsidies matter?," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 857-873, September.
    4. Rida Akzar & Wendy Umberger & Alexandra Peralta, 2023. "Understanding heterogeneity in technology adoption among Indonesian smallholder dairy farmers," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 347-370, March.
    5. Milena Bojovic & Andrew McGregor, 2023. "A review of megatrends in the global dairy sector: what are the socioecological implications?," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(1), pages 373-394, March.
    6. Kalaitan, Tetyana & Stybel, Volodymyr & Hrymak, Oleh & Sarakhman, Oksana & Shurpenkova, Ruslana, 2023. "State support of the dairy industry and prospects for its development in the post-war period," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(3), September.

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    Keywords

    Livestock Production/Industries;

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