Agribusiness Handbook: Milk / Dairy Products - FAO

and the farm structure is fragmented. The age structure of the farming population
is not favourable. Husbandry is poor due to low education standards, poor
cattle genetics and limited knowledge. Yields are, therefore, low. Labour costs
are low, but transportation costs are high and typically involve small volumes
of milk. Hygienic milk quality is poor, and there are typically few cooling
facilities for raw milk. Health and hygiene standards on farms and in dairies
are well below EU norms. With a few exceptions, the level of foreign inward
investment in the WBCs has been low; as a result, the current processing
infrastructures are small-scale, and technological improvement is needed.
Some countries in the region have been more open to foreign investment than
others. Domestic industries suffer from import competition from both within
and outside the region and, without restructuring of and investment in these
industries, this competition will increase over time.
The ETCs suffer from the same problems as do those in the WBCs. Some
countries have better infrastructure, as a legacy from the days of the Soviet
regime, but all countries lack investment in transport, processing infrastructures
and the rural environment. Consumption levels are generally low. Without
new investment in farming and processing infrastructures, the dependence
on dairy imports will grow as consumers expand their buying habits and diets.
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