Competitiveness of the EU dairy industry

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Competitiveness of the EU dairy industry

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3 Dairy chain and dairy products

In this chapter dairy products from cow milk are discussed. The main products

that are made of cow milk are: fresh milk, cheese, yoghurts, butter and milk

powder. These dairy products are partly produced for the local market, due to

the relative short shelf life of some dairy products like fresh milk, yoghurt and

(fresh) cheese. In addition, several products are traded globally, such as butter,

cheese and milk powder. The dairy chain consists of the parties as shown in

figure 3.1.

Figure 3.1 Dairy chain

Consumers

Retail

Dairy industry

Dairy farmers

Dairy traders

The EU dairy industry is very dominant in the world market. The EU-25 exports

€21 bn worth to other countries, while Oceania exports amount to

€3.8 bn and NAFTA €1.1 bn. EU-27 is responsible for 72% of the total international

trade when intra-EU trade and intra-Oceania trade between countries is included

but intra-state trade within the states of the US and Canada is excluded.

In relation to the exports of 2002-2004 (Wijnands et al., 2007) this is a further

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