Markets

We are the World’s Largest Milk Powder Exporter.

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CHINA

China’s Milk Powder markets have grown substantially over the past decade and are expected to continue to expand. At the same time, China’s domestic dairy industry is in the midst of rapid modernization.

At the same time, Chinese consumption of Dairy products is growing rapidly from a historically low base, making China the most dynamic segment of the Global Dairy market. Per Capita Milk and Dairy consumption were already growing rapidly in cities before 2005. In the countryside, growth accelerated after 2005. Between 2002 and 2016, growth in sales was fastest for Milk formula (which includes infant formula) and Yogurt, although growth in these products lagged behind the initial increases in Milk consumption.

ALGERIA

Algeria is one of the Largest Dairy importers in the world, reliant highly on Milk Powder and Milk imports to meet its domestic market demand. It is estimated that Algeria imports over 300 million metric tons of Milk Powder on a yearly basis.

Annual per capita consumption of Drinking Milk Products in Algeria stands at around 100 liters. Milk accounts for a 22% share of Algerian food bills, according to recent statistics. Milk is the cheapest form of protein in the country. The government is aware that in order to reduce food bills, the country must produce more raw milk. However, consumption is increasing significantly due to rapid population growth.

BRAZIL

Milk Powder consumption remained strong over the last decade. The growth in consumption has far outstripped the production of Milk Powder domestic. Therefore, Brazil is one of the heavy importers of Milk Powder from Argentina and Uruguay.

Brazil is consistently one of the largest dairy producing countries in the world. In 2016 the country experienced its largest drop in production in 55 years, however. A major factor was a drought which devastated Brazilian cattle feed production, but another was competition from lower international milk prices. Local dairy farmers simply could not compete with cheap imports. Looking to 2017, some new trade dynamics will likely come into play that may disrupt the regional flow of dairy products.

RUSSIA

Today Russia is one of the world’s largest producers of milk and dairy products. The volume of imports of dairy products increased from January to July 2018 by 8% in comparison with the same period in 2017, due to attractive price proposals for milk powder, butter and cheese products.

Russia’s dairy industry is capable of producing all of the major product groups, such as raw milk – by far and away the biggest product – butter, skimmed and whole milk powder, creams, yoghurts, buttermilk, and infant formula. Increasing of Dairy production in Russia is finally on the rise. Sophistication of production processes and facilities means the portfolio of Russian products are widening.

INDONESIA

The consumption of milk and dairy products continues to increase rapidly in Indonesia, which is creating an attractive market for local producers and foreign exporters. The peoples of Indonesia are increasingly turning to milk as a beverage, but also all of its downstream products.

Demand for dairy products in Indonesia has grown by over 10 percent per year for the past decade due to changing consumer habits and population growth. Indonesia is currently still characterized by a low per capita milk consumption (about 11.7 liters per year), which provides ample room for growth as Indonesians’ milk consumption is growing by almost five percent per year. The lack of supply from local dairy producers means that Indonesia needs to import milk from abroad.