Milk-and-Dairy-Products-in-Human-Nutrition-FAO

Chapter 8 – Dairy-industry development programmes: Their role in food [...] 335
• 37 percent higher net income
• 25 percent higher milk yields
• 13.5 percent higher price
• 9 percent more lactating animals
• 6 percent fewer dry buffaloes (FAO, 2007a).
Recently, however, the scheme has not been in operation, reportedly because of
poor management.
A study in the Moroccan High Atlas Mountains showed that developing a dairy
cooperative facilitated market access by reducing marketing costs and improving
economies of scale (Bürll, Aw-Hassan and Lalaoui Rachidi, 2008). Similar findings
were reported in other studies (Sraïri et al., 2009). In the 1970s and 1980s Kenya and
Tanzania – with the help of FAO, DANIDA, WFP and other development partners
– established parastatal dairy cooperatives. Kenya Cooperative Creameries (KCC)
(originally a settler-owned dairy) and Tanzania Dairies Limited were supported for
collection and processing milk nationally. Both ventures failed and revival structures
are now evolving.
8.6.3 Trends in market demand
The demand for milk and milk products is influenced by socio-economic and
demographic factors. The percentage of the population that lives in rural areas has
stabilized at about 20 percent in developed countries and has grown only slowly
since the 1970s whereas in developing countries it declined from 71 percent in 1980
to 55 percent in 2010 (UN, 2011). Growth in developing countries is such that urban
populations are expected to double by 2025. Urbanization accounted for 80 percent
of the world’s population growth between 1990 and 2000 and the urban population
reached 50 percent of the total earlier in this decade. These demographic changes
have great implications for dairying in developing countries. DIDPs must be
planned to satisfy consumer demands for variety, convenience, safety and concerns
for animal welfare and the environment characteristic of urbanized populations.
These are discussed further in Chapter 2.
8.7 Regional and national patterns and approaches
8.7.1 Dairying in developed countries
In regions with developed dairy industries, such as Europe, North America and
Oceania, dairying contributed to rural development particularly in the first half of the
twentieth century. Governments were very supportive in providing education, training,
extension, research, and technical and policy assistance in the organization of producers’
groups to improve access to inputs and services. Cooperative structures were
favoured, emphasizing member education for participation in society programmes.
In some cases governments gave grants and tax concessions to rural enterprises and
provided assistance with export of surpluses. Under the Common Agricultural Policy
of the EU, and less markedly in the United States, government support payments
reportedly distort dairy trade. In 2002 Producer Subsidy Equivalent for milk (portion
of farmer income derived from subsidies) ranged from 2 percent in New Zealand to
90 percent in Japan, with Australia at 31 percent, the United States at 52 percent, the
EU 61 at percent and Canada at 67 percent (OECD and FAO, 2008).