What About The Global Milk Industry?

Milk is regarded as a complete food for diet. For almost any mammal, milk is the principal source of nutrition, particularly for babies, because this white liquid is easily digestible. Numerous health benefits associated with the use of milk include, but not limited to improved bone strength, stronger immune system, decreased risk of cardiovascular ailments, and healthy skin.

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Adequate consumption also aids in the deterrence of diseases like dental decay, dehydration, obesity, and a number of other chronic diseases. Milk accounts for around 14 percent of modern agricultural trade, together with its other products. Skimmed Milk Powder (SMP) and Whole Milk Powder (WMP) are the most demanded and traded products, whereas fresh milk accounts for just less than 1% of manufacturing traded. Infant Formula Milk is another highly demanded product with products like Starting Milk Formula, Follow-on Milk Formula, Toddlers Milk Formula, and Special Milk Formula.

Global milk industry is dependent on breeding animals such as cows, goats, sheep, buffaloes, and camels for milk production. However, lactose-free alternatives like soy milk and almond milk are also of significant demand from the milk market. However, cow milk is estimated to maintain an 80% share of the global milk production. Buffalo milk, though produced in fewer quantities than cow milk, is produced and traded mostly in countries like Pakistan and India.

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The milk production system can be classified into four, namely technical landless system, market-oriented system, subsistence-oriented incorporated dairy-crop systems, and pastoral systems. The global milk business is driven by the significant demand from countries with dietary guidelines recommending milk as a staple food. Milk offers an average 134 kilocalorie of energy per capita every day. Additionally it is an affordable supply of nourishment to meet the daily recommended amounts.

North America accounts for a significant share in the international milk sector with the U.S, Canada, and Mexico contributing significantly to the growth. In South America, Brazil and Argentina dominate the business and nations like Uruguay and Chile are projected to exhibit slow growth.The milk sector in Russia exhibits a stunning increase with approximately 40 percent of the gross product of animal husbandry. The largest milk producer in the world is India followed by the U.S., China, and Pakistan, among others. Long-term demand for milk and its products is projected to enroll a significant growth, which in turn will lead to price volatility. The industry is expected to witness erratic changes in costs in the upcoming years.

Lifestyle

The changing lifestyle, food habits, population growth, etc. are a few of the factors bolstering the development of the worldwide milk industry. In brief, the increase in milk production and consumption worldwide is the important factor boosting the worldwide milk industry growth. As an example, the European Union was controlled by a milk quota system until 2015, according to which each member state had a national production quota. If any condition exceeded its quota, it has to cover a set penalty to the EU. The abolishment of the system has been impacting the international milk sector on a positive note, which in turn is expected to spur the development of the worldwide milk industry in the not too distant future.

Introduction of many different tastes, attractive packaging, and availability in various forms elevate the use of milk globally. For instance, in March 2016, Prairie Dairy Farms introduced two new flavors, namely Strawberry Créme and Orange Crème, of its Peeps flavored milk. The packed milk with fresh flavors and colors has gained strong market demand in the developed countries. The key participants in the international milk industry are gradually shifting their attention toward the developing countries so as to explore the market opportunities.

Remember

Busy life schedule of taxpayers in developing nations opens up a gargantuan scope for the multinational companies to get a foothold in such markets focusing on breakfast goods. Selling products through advertisements highlighting simple breakfast and on-the-go choices will propel the development of the worldwide milk industry. Growing health concerns promote the customers from abstaining from carbonated beverages and other juices, which then creates an opportunity for the milk sector. Apart from the aforementioned factors driving flavored milk market, the increasing awareness on healthy diet hinders the industry increase to an extent. However, the unflavored milk market see a steady increase in the worldwide milk sector and the trend is expected to continue over the upcoming years also. The global milk business is extremely competitive and dynamic in character.