The development of the milk and dairy products market

The dairy industry is one of the leading segments in food industry, because milk and milk products are the basic products in the food structure of the country's population. World production of milk for the last 3 years has remained largely on the same level, except for growth in China and India by 4%, in Argentina and New Zealand by 10%, while in the EU for the last 3 years the growth rate of production did not exceed 2%. However, as before, the main exporters of dairy products on the global market is the EU and New Zealand, whose share for the last three years reached almost 66%. Dynamics of imports of consumption is also not changed, except China, where despite the increase in production, imports in 2014 increased comparatively to 2013 by 2.5 times. During the analyzed period the largest increase in imports to Russia were observed in 2012, and in comparison with 2011 was twice higher (190.0 thousand tons).

Overall, looking at the market of the Customs Union, the greatest relative density of 73% takes the Russian Federation, but milk production per capita is the lowest – 230 liters, while in Belarus and Kazakhstan it is 692.3 and 324.9 respectively. Total for 20011-2013, the production growth was observed only in Belarus, and in Russia and Kazakhstan its production slightly decreased. This is primarily due to the fact that in 2011 the anomalous drought killed almost half the acreage, so that, food supply was not fully formed, and livestock in the personal farmstead in Kazakhstan decreased by 32.4 thousand heads, Russia - 213 thousand.

Considering the average wholesale prices for milk from the Customs Union producers, the highest price formed in the Russian Federation with according to Eurostat data for 2012-2013, it exceeded the price of the product in Europe on 4 and 61 U.S. dollars respectively. Producers in Belarus have the lowest price of milk, which in 2013 was not exceeded 334.2 U.S. dollars / ton, while in Russia and Kazakhstan for this period prices were 482.8 and 428.3 U.S. dollars respectively. In general, the tendency of rising prices reflect that demand for milk increases annually, and if in 2012 one ton of milk in Belarus was worth 227 dollars of United States, in 2013, it grew up in 1.5 times and made 334 dollars.

Today, the dairy products wholesale market has a number of problems: the lack of funds for the acquisition of both circulating and fixed assets that affects the technological modernization, weak presence in the market of packaging materials of domestic production, the lack of a system of harvesting and primary processing of milk, and, what is not less unimportant - its small-scale production. It has to be said that the development of the dairy industry should be pushed by increase in external demand. In particular, it is predicted that Chinese milk powder imports in 2015 will reach 400 tons. In addition the United States and the EU situation with stocks of some dairy products appears to be quite hard. E.g. butter reserves in the EU are at a low level, and in the U.S. - by 20% below average of the last decade.

The author is NewBusinessProposals.Co.Uk. There you will find company catalogs with food products wholesale.

The author of the article is NewBusinessProposals.com