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

Chapter 8 – Dairy-industry development programmes: Their role in food [...] 341
Recently the Pan American Dairy Federation (FEPALE), formed with FAO
support in the 1990s, helped reverse the trend of consolidating milk production in
very large units by promoting both the social and commercial benefits of dairying.
Argentina illustrates the dilemma of small versus large operations. Over the five
years to 2010 Argentina has recorded the largest growth in net exports of dairy
products after the United States as a result of huge investments in large units. In the
past two decades the number of dairy units shrank from about 50 000 to 11 000.
Despite this reduction, dairying still ranks sixth in job generation and fourth for
equitable income distribution (Iglesias, 2010). Thus, the government is developing
a new Strategic Plan for Argentina’s Dairy Chain 2020 focusing on small- and
medium-scale dairying.
Near East and North Africa
Milk production constitutes a relatively small share of total agricultural output in
the Near East and North Africa. The sector is relatively underdeveloped, except
perhaps in Israel, where high-input–high output intensive dairying is practised.
Milk from small ruminants is more important than that from cows and buffaloes
in some countries, but imports account for a large proportion of total supply and
weaken trade balances. In most countries the share of national milk supply coming
from cows is increasing as a result of programmes to develop supplies for urban
centres such as Amman, Beirut and Damascus.
Government-assisted producers’ groups operate in Egypt, Jordan, Lebanon and
Syria but these groups account for a small percentage of milk marketed. Middlemen
or traders are the principal buyers of milk at farm level. State-owned dairies are common
in the region but account for less than 10 percent of products manufactured.
North Africa has been a significant importer of dairy products. Its processing
and marketing chains include private, cooperative and informal systems. Small
ruminants are relatively more important in this part of the region. Dairy production
has socio-economic importance in Morocco, where the dairy chain provides jobs for
770 000 people, about 10 percent of agricultural jobs (FAO, 2011e).
8.8 Programmatic issues
The main elements in an organized, formal market dairy sector shown in Figure 8.2
demonstrate the complex challenges in dairy development. Elements of a lessorganized
or informal dairy sector include those inside the triangle plus consumers.
8.8.1 Factors influencing success in dairy development projects
Appropriate technical interventions, on-farm or off-farm, must be supported by an
enabling environment of inclusive, pro-smallholder strategies, policies and institutional
support, with markets ensuring fair pricing.
The following features are required for successful dairy development projects in
all regions:
• Clear understanding of the problems – requires detailed technical and
economic evaluation of market opportunities and potential to supply
these markets.
• Feed and water resources – requirements and potential sources in terms of
quantity, quality, cost, seasonality and sustainability of feed supply.