partners of the ifcn dairy network 2006 - c.r.p.a · 3.8 margin in the dairy chain: processing,...

2006

For a BetterUnderstanding ofMilk ProductionWorld-Wide

Partners of the IFCN Dairy Network

Research Partners: 58 Institutions from 55 Countries

Main Supporting Partners

2006

Institutional Partners

IFCN Supporters

2006





2006


IFCN Supporters

Extract

To receive the full Report please contact

torsten.hemm

[email protected]

2

Elgin Giffhorn Lola Izquierdo

Katja SeifertEberhard Bönemann

The IFCN Dairy Research Center

The IFCN Dairy Research Center, since 1st of October 2006 located in Kiel, Germany is co-ordinating and organising the activities of the network. All members have a degree in agricultural sciences. They use the IFCN infrastructure for their research projects in dairy economics (Master, PhD, post doctoral research) or support the network activities (full time / part time employments).

IFCN Dairy Report 2006

Participants of the 7th IFCN Dairy Conference 2006

Torsten Hemme Eva Deeken Karin Wesseling Otto Garcia

Khalid Mahmood

Organisational details

Editors IFCN Dairy Report 2006 Hemme T, IFCN Dairy Team and all IFCN researchers. For references of the IFCN Dairy Report use: Hemme et al. (2006): IFCN Dairy Report 2006, International Farm Comparison Network, IFCN Dairy Research Center, Kiel, Germany

ContactTorsten Hemme, e-mail: [email protected], homepage: www.ifcndairy.org

Ordering the Dairy Report 2006 As we believe in win-win based co-operations the report is available via longer term partnership with the IFCN Dairy. Please contact us for details.

For organisations that would receive the report without becoming a network partner we charge a fee (50 % of a country membership fee) to maintain the research infrastructure. For educational institutions (universities, etc.) and organisations from developing countries, special arrangements are foreseen. Please ask for details.

© IFCN Dairy Report 2006

Main supporting partners of the IFCN Dairy Network

Juliane Stoll

Alex Blarr

Anne Pasmann Mikhail RamanovichAsaah Ndambi

55 partners from 31 countries – conference program see Annex 1

© IFCN Dairy Report 2006 1

IFCN Dairy Report 2006

1. Cost comparison: This year we have reduced the variables being published to have more space for the country pages.

2. Milk prices: In this chapter we have increased the number of countries analysed to 60. We also added a chapter about feed prices and the milk feed price ratio.

3. Dairy sector & chain profi le: This profi le, produced for 60 countries, gives a comparable overview of:

Consumer prices and margins in the chain. Tariffs and the world market price for milk. Milk pricing and milk quality systems. Seasonality of milk production and pricing. Milk processing and consumption pattern. Dairy trade and self suffi ciency in milk.

4. Special studies: These summarise a wide number of IFCN studies and focus as well on method improvements.

A Word of Thanks

I would like to extend my heartiest thanks to all our scientifi c partners, main supporting partners (DeLaval, Fonterra, Pfi zer), our supporters and also the people working in the IFCN Dairy Research Center. Your support was the driver for keeping the network alive especially during the organisational transition period 2005/06. It was a pleasure to serve the network in 2006 and I am looking forward to our activities in 2007.

Torsten Hemme, Head of the IFCN Dairy Network

IFCN Dairy Report 2006 – Letter of the Editor

Dear friends,

It is a pleasure for me to summarise the highlights of our research and network activities in 2006.

The Mission as a Guide

Our mission »Create a better understanding of milk production« has proven to be a good guide for excellent dairy economic research results and also the very enjoyable intercultural working atmosphere.

Status of the Network in 2006

60 countries, representing 91 % of world milk production have been analysed with their dairy sector and chain profi le. 101 typical farms from 34 countries participated in the farm comparison. New countries are Belarus, Bulgaria and Cameroon.

News and Highlights 2006

IFCN Dairy Conference 2006: The conference held in Poland was a big success. 90% of the activities were rated by the participants as good or very good. P. Jachnik, ATLA and J. Otte, FAO contributed as invited speakers.

IFCN World Dairy Map: The fi rst map of this type was launched during the 2006 Dairy conference. It summarises the main fi ndings of the Dairy Report 2005.

CAU – University Kiel: In 2006 we signed a private public partnership with the CAU and its new »Master of Dairy Science« program. Due to the new relation, the IFCN Dairy Research Center moved to Kiel.

IFCN Support Association e.V.: We have founded a non-profi t organisation. It is able to collect donations and support students/researchers who work within the IFCN Network.

Method issues: In 2006 we have focused on a number of method challenges like: Decoupling of direct payments, alternative ways to calculate opportunity cost, new ways of cost item analysis and the milk supply curve.

Analytical highlight: In 2006 for the fi rst time a study on benchmarking 45 different dairy development programs for a 3 cow farm in India, Andhra Pradesh was completed. This was a big step forward to help policy makers to identify the most promising policies for dairy development.

2 © IFCN Dairy Report 2006

Timo Sipiläinen, Sami Ovaska, Matti Ryhänen

Agrifood Research Finland, MTT Economic Research, Helsinki, FinlandSeinäjoki University of Applied Sciences, School of Agriculture and Forestry, Ilmajoki, Finland

Ola Flaten, Bjørn Gunnar Hansen NILF – Norwegian Agricultural Economics Research Institute; TINE, Norwegian Dairies, Oslo, Norway

Eastern Europe, Middle East and Africa

Michal Switlyk, Malgorzata Karolewska, Ewa Koloszycz

University of Szczecin, Institute of Management, Szczecin, Poland

Iveta Bosková

Vuze – Research Institute of Agricultural Economics, Prague, Czech Republic

Csaba Borbély

University of Kaposvár, Faculty of Economic Science, Kaposvár, Hungary

Zlatan D. Vassilev

PhD student University Hohenheim, Germany; Bulgaria

Olga M. Karasyk, Olena Bidna

National Agricultural University of Ukraine, Kyiv, IFC, Kyiv, Ukraine

Mikhail Ramanovich

PhD Student at IFCN Dairy Research Center, Belarus

Liron Tamir Israel Dairy Board, Rishon-Le‘Zion, Israel

Asaah Ndambi

PhD Student at IFCN Dairy Research Center, Cameroon

Western Europe

Christian Gazzarin

Agroscope Reckenholz-Tänikon Research Station (ART), Agricultural Economics, Tänikon, Switzerland

Leopold Kirner

Federal Institute of Agricultural Economics, Vienna, Austria

Alex Blarr, Eberhard Bönemann

IFCN Dairy Research Center,Kiel, Germany

Michel de Haan

Animal Sciences Group, Wageningen-UR, Lelystad, The Netherlands

Gérard Conter

Ministère de l’Agriculture, Service d’Economie Rurale, Luxembourg

Jean-Luc Reuillon

Institut de l’Èlevage, Département Actions Régionales, Aubière, France

Ernesto Reyes

Animal Health and Livestock Services, TRAGSEGA, Madrid, Spain

Alberto Menghi

CRPA – Centro Ricerche Produzioni Animali, Reggio Emilia, Italy

Colm O’Reilly

Milk Development Council, Cirencester, United Kingdom

Fiona Thorne

Rural Economy Research Centre, Teagasc, Dublin, Ireland

Martin Wegge, Ole Kristensen

The Danish Agricultural Advisory Centre, National Center, Aarhus, Denmark

Carolina Nilsson Swedish Dairy Association, Stockholm, Sweden

Participating Dairy Economists / Co-editors of the Dairy Report

For references of the Dairy Report use: Hemme et al. (2006): IFCN Dairy Report 2006, International Farm Comparison Network, IFCN Dairy Research Center, Kiel, Germany. For references in the special studies or the country reports use f.e.: Gazzarin C (2006): Switzerland – Dairy sector & chain profi le. In: Hemme et al. (2006): IFCN Dairy Report 2006, International Farm Comparison Network, IFCN Dairy Research Center, Kiel, p 68.

Dairy Research Center



58 research institutions from 55 countries


Asia

CL Dadhich, TN Datta, AK Saha

National Dairy Development Board, Anand, India

Khalid Mahmood

Agriculture Policy Studies Institute, Lahore, Pakistan

A. R. Khan

Bangladesh Agricultural University Mymensingh, Bangladesh

Sam Chi Dairy ConsultantBeijing, China-North

Oceania

John McKenzie

Dairy Australia, Melbourne, Victoria, Australia

Andrew Weinert, Ian Bell

Department of Agriculture, Perth, Western Australia

Nicola Shadbolt College of Sciences, Massey University, Palmerston North, New Zealand

North and South America

Mathieu Frigon

Dairy Farmers of Canada, Ottawa, Canada

Ed Jesse

Babcock Institute for International Dairy Research and Development, University of Wisconsin-Madison, USA

James Richardson

Texas A&M University, Agricultural Food Policy Centre, Department of Agricultural Economics, College Station, Texas, USA

Bernardo Ostrowski

Universidad Buenos Aires (UBA), Cátedra de Administración Rural, Facultad de Agronomia, Buenos Aires, Argentina

Lorildo Aldo Stock

Embrapa Gado de Leite (Embrapa Dairy Cattle), Juiz de Fora, Minas Gerais, Brazil

Leandro A. Ponchio

Centro de Estudos Avançados em Economia Aplicada (CEPEA), Sao Paulo, Brazil

Carlos Lizana

Cooprinsem, Osorno, Chile

Carlos A. Gomez

Universidad Nacional Agraria La Molina, Lima, Peru

Participating Dairy Economists/ Co-editors of the Dairy Report

Research participants only in the country pages

Margita Stefanikova Slovensky zvaz prvovyrobcov mlieka, Nitra, Slovakia

Aleksejs NipersLatvian State Institute of Agrarian Economics, Riga, Latvia

Ben MoljkKmetijski inštitut Slovenije, Ljubljana, Slovenia

Anatoli TakunCentre of Agricultural Economics, Minsk, Belarus

Ilir Kapaj UBT University, Tirane, Albania

Michel Nordmann Farmer in Transylvania, Romania

Kirill ZhichkinSamara State Agricultural Academy, Samara Region, Russian Federation

Evelina BudjurovaUniversity Giessen (Germany), Uzbekistan

David Balikowa Dairy Development Authority, Kampala, Uganda

Henri BayemiInstitute of Agricultural Research for development (IRAD), Bambui, Cameroon

Mutasim Mekki Upper Nile University, Khartoum, Sudan

Aminu Shittu Usmanu Danfodiyo University, Sokoto, Nigeria

Koos Coetzee Milk Producers’ Organisation, Pretoria, South Africa

Jaime Jurado Arredondo Universidad Autonoma de Chihuahua, Mexico

Jorge Alvarez University Montevideo, Uruguay

Theingi MyintAgricultural University Yezin, Myanmar

Jarunluk YounggadChiang Mai University, Thailand

Hoang Thi Huong TraNational Institute of Animal Husbandry, Hanoi, Vietnam

Naomi K. Torreta National Dairy Authority, Diliman, Quezon city, Philippines

Isti Subechan Soedirman University, Purwokerto, Central Java, Indonesia

Kyung-Ryang Kim, Seon ShiKangwon National University, Chuncheon, Republic of Korea

Nobuhiro SuzukiKyushu University, Japan


Table of Contents


Preface

IFCN Dairy Report – Developments 2000 - 2006 6

Regional Maps and the Typical Farms 7

Questions and Answers about IFCN Dairy 8

1 Comparison of the typical farms 2005 in US-$

1.1 Summary – Farm Comparison 2005 in US-$ 14

1.2 Milk Supply Curves 2005 16

1.3 Description of the Dairy Enterprise 18

1.4 Costs of Milk Production only and Milk Price 20

1.5 Total Costs and Returns of the Dairy Enterprise 22

1.6 Returns: Milk Price and Cattle Returns 24

1.7 Returns: Direct Payments and Policy 26

1.8 Profi ts and Returns to Labour 28

1.9 Asset Structure and Return on Investment 30

2 Developments in milk prices 1996 - 2005

2.1 Milk Prices in 2005 in US-$ and Developments 36

2.2 Milk Price Developments during 1996 - 2005 in US-$ 38

2.3 Milk Price & Currency Developments 1996 - 2005 40

2.4 Feed Price and Milk / Feed Price Ratio Comparison 42

3 Country Reports – Dairy sector & chain profi le

3.1 Status and Deveplopment of Milk Production 48

3.2 Seasonality of Milk Production and Milk Prices 50

3.3 World Dairy Sector Fact Sheet 1990 - 2004 52

3.4 Milk Surplus and Defi cit 2004 in t ME and US-$ 54

3.5 Tariffs Analysis for the Dairy Sector 56

3.6 World Milk Consumption per Capita 2004 and Changes in the Last 5 years 58

3.7 Comparing Consumer Prices for Milk and Farmers’ Share of It 60

3.8 Margin in the Dairy Chain: Processing, Retailing and VAT 62

3.9 Dairy Products in Different Countries 64

3.10 Method Explanation of the Country Page 2006 66

Dairy sector & chain profi le

3.11 Norway 67

3.12 Switzerland 68

3.13 Austria 69

3.14 Germany 70

3.15 The Netherlands 71

3.16 Luxembourg 72

3.17 France 73

3.18 Spain 74

3.19 Italy 75

3.20 United Kingdom 76

3.21 Ireland 77

3.22 Denmark 78

3.23 Sweden 79

3.24 Finland 80

3.25 Poland 82

3.26 Hungary 83

3.27 Czech Republic 84

3.28 Slovakia 85

3.29 Latvia 86

3.30 Lithuania 87

3.31 Estonia 87

3.32 Slovenia 88

3.33 Albania 89

3.34 Bulgaria 90

3.35 Romania 91

3.36 Ukraine 93

3.37 Russian Federation 94

3.38 Belarus 95

3.39 Uzbekistan 96

3.40 Kazakhstan 97

3.41 Israel 98

3.42 Turkey 99

3.43 Iran 99

3.44 Kenya 100

3.45 Uganda 101

3.46 Cameroon 102

3.47 Sudan 103

3.48 Nigeria 103

3.49 South Africa 105

3.50 Canada 106

3.51 USA 107

3.52 Mexico 108

3.53 Peru 109

3.54 Brazil 110

3.55 Uruguay 111

3.56 Chile 112

3.57 Argentina 113

3.58 India 114

3.59 Pakistan 115

3.60 Bangladesh 116

3.61 Myanmar 117

3.62 Thailand 118

3.63 Vietnam 118

3.64 Philippines 119

3.65 Indonesia 120

3.66 China 121

3.67 Republic of Korea 122

3.68 Japan 123

3.69 Australia 124

3.70 New Zealand 125

A milk processing plant

A buffalo in India


Table of Contents

4 Special Studies

Additional farm comparisons and analysis

4.1 Comparison of Milk Production in Different World Regions 130

4.2 Comparison of Five Dairy Production Systems 132

4.3 Time Series Analysis of a German and a New Zealand Farm 1996 - 2005 134

4.4 Dairy Production in Four Italian Districts 136

4.5 Recent Trends in African Milk Production Systems 138

4.6 Comparison of an Individual Farm with Farms of the IFCN Database 140

Policy analysis, forecasting work

4.7 Competitiveness of Dairy Farms in Alpine Regions 144

4.8 IFCN Dairy Forecast – Germany 1996 - 2010 146

4.9 Farm Structure in Bulgaria – Perspectives in the EU 148

4.10 Benchmarking 45 Dairy Development Activities in Andhra Pradesh, IN 150

4.11 Development of Milk Regions in Germany – A Processors View 154

Dairy sector and dairy chain analysis

4.12 Analysis of the Peruvian Feed Chain: The Case of Cajamarca 156

4.13 Analysis of Milk Price Development and Dairy Tariffs for 2004 158

4.14 Analysis of the Dairy Chain in Six Countries 160

4.15 Method Approach – Individual Farm Data vs Typical Farm Data 162

Methods improvements

4.16 A Method for Activity Based Cost Analysis in Dairy Farms 164

4.17 Concept of IFCN Cost Analysis after Decoupling of Direct Payments 166

4.18 Method Development: Opportunity Costs & Milk Yield 168

4.19 IFCN Research Approach to Guide Dairy Development Activities 170

4.20 Consideration of Farm Risk and Uncertainty in Dairy Development 172

Annex

A.1 7th IFCN Dairy Conference 2006 – Szczecin, Poland 178

A.2 Program: 3rd IFCN Dairy Supporter Conference 2005 180

A.3 IFCN Dairy and Participation in Conferences 2005 181

A.4 IFCN Dairy and Participation in Conferences 182

A.5 The IFCN Dairy Team in 2006 (Status July 2006) 184

A.6 IFCN World Dairy Map 185

A.7 IFCN Dairy Publications 186

A.8 Description of Data Collection for Typical Dairy Farms 188

A.9 Description of the Typical Dairy Farms Analysed 189

A.10 Exchange Rates 1996 - 2005 194

A.11 Abbreviations 195

A.12 Assumptions for the Calculations – Farm Economic Indicators 196

A.13 Specifi cation of World Regions 197

A.14 Who is Who 198

Serving the costumer

Harvesting cornsilage


2000 2001 2002 2003 2004 2005 2006

Countries analysed in

the farm comparison 8 20 24 27 31 33 34

No. of farm types* 21 52 72 76 92 102 103

Special topic Ex-post Country Dairy Farm Dairy Milk Dairy

analysis reports production structure sector production sector &chain

1996 - 2000 on milk systems analysis profi le fact sheet profi le

production survey 1990 - 2001 1981 - 2001 1996 - 2003 1990 - 2004

IFCN Dairy Conference Sept. 2000 June 2001 May 2002 May 2003 June 2004 May 2005 May 2006

* Farms analysed in Chapter 1 and 4.

IFCN Dairy Report – Developments 2000 - 2006

Which countries are participating in the farm comparison in 2006?


Countries / regions last year

New countries / regions / farms

Contacts to dairy economists

Dairy animals in

United Kingdom Cameroon India New Zealand


Texas2,400

Wisconsin80

350

Canada5798

California1,710

Peru6

15

Argentina170

1,700

Chile45

351647

Brazil

45 MG80 MG

90 PR54 RS

62 GO

Regional Maps and the Typical Farms

Legend: Numbers indicate the number of cows in the typical farms.LL = Land less. ++ = Farms better managed than average. GO = Goias, MG = Minas Gerais, RG = Rio Grande do Sul, PR = Parana.

South America

North America

Pakistan 1, 3, 10

New Zealand282546

1,042

AustraliaWestern

239247620

Australia Victoria

210225925

India

Maharashtra2 LL2

Karnataka124

510

China - Hebei40

400

1, 5, 9Punjab

West Bengal24

Bang-ladesh

210

Jinghai County, Tianjing

9

China - Shanxi

Asia and Oceania

Europe

Sweden50

195 Finland2444Norway

1931

60

Switzer-land

Austria122540

---

2060

Spain

3760

103

France3170

Luxembourg3670

Germany30, 55, 80,85, 120, 650

Denmark100180

NL5595UK

20699

Ireland5187

Czech Republic67, 428, 535

Hungary100400

Poland12, 20, 60

Hungary100400

Poland12, 20, 60

Hungary100400

Poland12, 20, 60Poland12, 20, 60

Italy116229

Israel63

270

Ukraine2, 2 ++, 500

Belarus650650 ++

Belarus650650 ++

Belarus650650 ++

Bulgaria2

22

Bulgaria2

22

Cameroon1

30

Africa


What is IFCN?

IFCN stands for International Farm Comparison Network. The IFCN is a world-wide association that is linking agricultural researchers, advisors and farmers.

What is the mission of IFCN Dairy?

To create a better understanding of milk production world-wide.

Why is the IFCN Dairy Network needed?

Milk production world-wide is characterised by three key issues which will lead to rapid changes in the future:

Very diverse farming systems. High dependency on politics (trade policy, quotas,

direct payments, etc.). Scope for substantial changes in the policy.

The global know-how provided by the network becomes an important »production factor« for successful business decisions for farmers and the related agribusiness companies. Moreover policy discussions (WTO, agricultural subsidies, etc.) can become more fact-based which makes solutions easier to fi nd.

What are the annual activities?

Create a harmonised database of typical farms. Analyse the farms using the IFCN method. Validate the results during the Dairy Conference. Publish the results in the Dairy Report. Improve the IFCN methods continuously. Exchange ideas on current dairy issues and research

projects.

What are the values of the IFCN?

IFCN is an open scientifi c system for the exchange of ideas and the creation of knowledge and information. IFCN is independent from third parties (policy makers, lobby groups, industry) and committed to truth, science and reliable results.

What are the priorities?

I. Sustainability of the network infrastructureII. Reliability of data and quality of the resultsIII. Inclusion of more countries and farmsIV. In-depth analysis (cost components, etc.)V. Special studies (policy analysis, etc.)

How is the IFCN Dairy organised?

IFCN Dairy is a scientifi c network. The IFCN Dairy Research Center coordinates the scientifi c work. Moreover it provides a professional management for the network.

How are the IFCN Dairy activities funded?

The network co-ordination is mainly funded by the consortium fee from the participating countries, partnerships with agribusiness companies and global agriculture-related institutions. All partners have agreed on the vision, priorities and values of the IFCN.

Questions and Answers about IFCN Dairy


7th IFCN Dairy Conference 2006

Intensive discussions based on facts


Dairy economists – Benefi ts from a partnership with IFCN

Benchmarking: Analyse your dairy region in a global context.

Networking: Link yourself to the leading network of experts in your research topic.

Access to data: Send in 2 farm types and get the world in return.

Promotion: Promote your institution nationally and internationally.

To join the IFCN Network you provide typical farm data from your country and in return will receive the annual IFCN Dairy Report comparing your farms with the rest of the world. If you prefer more intensive co-operation you have the opportunity to participate in the annual IFCN Dairy Conference, take model training, receive the models, the result-database and the input data of the typical farms used in the network. Moreover you are welcome to take part in international projects as well as in discussions on the future orientation of the network. In return your country becomes a member of the IFCN Consortium and provides the consortium fee.

Institutional partners

The IFCN Dairy Network has institutional partnerships with:

CAU – Christian-Albrechts- University, Kiel

IDF – International Dairy Federation FAO – Pro Poor Livestock Policy Initiative

Main supporting partners

The IFCN offers the main supporter status exclusively to one company per branch.

Milking equipment

Milk processing

Animal health

other branches in discussion

IFCN supporters

The IFCN offers the IFCN supporter status to interested agribusiness companies, being active around the dairy farm.

How to become a partner of IFCN Dairy?

The IFCN Dairy Team will provide you with any further information that you require ([email protected]).

Questions and Answers about IFCN Dairy

Intensive workshops


1 Comparison of the typical farms 2005 in US-$

1.1 Summary – Farm Comparison 2005 in US-$ 14

1.2 Milk Supply Curves 2005 16

1.3 Description of the Dairy Enterprise 18

1.4 Costs of Milk Production only and Milk Price 20

1.5 Total Costs and Returns of the Dairy Enterprise 22

1.6 Returns: Milk Price and Cattle Returns 24

1.7 Returns: Direct Payments and Policy 26

1.8 Profi ts and Returns to Labour 28

1.9 Asset Structure and Return on Investment 30

This page and the previous pages: Milk production in Poland (Photos: Katja Seifert, Torsten Hemme)


2 Developments in milk prices 1996 - 2005

2.1 Milk Prices in 2005 in US-$ and Developments 36

2.2 Milk Price Developments during 1996 - 2005 in US-$ 38

2.3 Milk Price & Currency Developments 1996 - 2005 40

2.4 Feed Price and Milk / Feed Price Ratio Comparison 42

Boat tour on the Odra river

2 Developments in Milk Prices 1996 - 2005

The plenary sessions


3 Country Reports – Dairy sector & chain profi le

3.1 Status and Deveplopment of Milk Production 48

3.2 Seasonality of Milk Production and Milk Prices 50

3.3 World Dairy Sector Fact Sheet 1990 - 2004 52

3.4 Milk Surplus and Defi cit 2004 in t ME and US-$ 54

3.5 Tariffs Analysis for the Dairy Sector 56

3.6 World Milk Consumption per Capita 2004 and Changes in the Last 5 years 58

3.7 Comparing Consumer Prices for Milk and Farmers’ Share of It 60

3.8 Margin in the Dairy Chain: Processing, Retailing and VAT 62

3.9 Dairy Products in Different Countries 64

3.10 Method Explanation of the Country Page 2006 66

Dairy sector & chain profi le

3.11 Norway 67

3.12 Switzerland 68

3.13 Austria 69

3.14 Germany 70

3.15 The Netherlands 71

3.16 Luxembourg 72

3.17 France 73

3.18 Spain 74

3.19 Italy 75

3.20 United Kingdom 76

3.21 Ireland 77

3.22 Denmark 78

3.23 Sweden 79

3.24 Finland 80

3.25 Poland 82

3.26 Hungary 83

3.27 Czech Republic 84

3.28 Slovakia 85

3.29 Latvia 86

3.30 Lithuania 87

3.31 Estonia 87

3.32 Slovenia 88

3.33 Albania 89

3.34 Bulgaria 90

3.35 Romania 91

3.36 Ukraine 93

3.37 Russian Federation 94

3.38 Belarus 95

3.39 Uzbekistan 96

3.40 Kazakhstan 97

3.41 Israel 98

3.42 Turkey 99

3.43 Iran 99

3.44 Kenya 100

3.45 Uganda 101

3.46 Cameroon 102

3.47 Sudan 103

3.48 Nigeria 103

3.49 South Africa 105

3.50 Canada 106

3.51 USA 107

3.52 Mexico 108

3.53 Peru 109

3.54 Brazil 110

3.55 Uruguay 111

3.56 Chile 112

3.57 Argentina 113

3.58 India 114

3.59 Pakistan 115

3.60 Bangladesh 116

3.61 Myanmar 117

3.62 Thailand 118

3.63 Vietnam 118

3.64 Philippines 119

3.65 Indonesia 120

3.66 China 121

3.67 Republic of Korea 122

3.68 Japan 123

3.69 Australia 124

3.70 New Zealand 125

Milk production in Pakistan (Photos: Khalid Mahmood)Previous pages: Milk production in Cameroon (Photos: Marianne Kurzweil)

© IFCN Dairy Report 200678

Milk pricing and quality

Production vs consum Export / Import profi lein Mill tons ME

Processing profi le in % of milk produced

Consumption pattern in kg ME / capita / year

Status and key developments

Milk prices and tariffs The chain for liquid milk

Trade ratios

Seasonality profi le 2004

Self-suffi ciency in milkExports / nat. productionImports / nat. consumption

in Mill tons ME

Surplus / deficit

Milk productionDemand Imports

Exports

year average = 100

Milk price monthlyMilk production monthly

50

60

70

80

90

100

110

120

130

140

150

Milk price monthlyMilk production monthly

Dec

NovOct

Sep

Au

gJu

lJu

nM

ayA

pr

Mar

Feb

Jan

0

100

200

300

400

500

600

700

800

Consumer price

VATMargin (Processor, retailer)»Farmers' milk price« (ECM)

2004

2003

2002

2001

2000

1999

1998

1997

1996

0

50

100

150

200

250

300

350

400

World market price + 2004 tariffs

World market price (SMP/butter)Milk price in the country

2004

2003

2002

2001

2000

1999

1998

1997

1996

0

100

200

300

400

500

600

700

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0

1

2

3

4

5

6

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

3.22 Denmark – Dairy Sector & Chain Profi le

Mar

tin

Weg

ge,

Ole

Kri

sten

sen

in DKK / 100 kg milk (ECM) in DKK / 100 kg milk

Status 2004

- Tariffs: Butter 116 %, SMP 72 %

- Share of farmers‘ price on consumer price: 32 %

- VAT on consumer price: 25 %

- Milk consumption: 595 kg ME per capita / year

- Self-suffi ciency in milk production: 149 %

Key developments 1990 - 2004 - Milk production: -0.38 % per year

- Milk consumption per capita: -0.05 % per year

- Population: +0.32 % per year

- Self-suffi ciency: Decreased by -14.2 % points

ExplanationsMethod: See Chapter 3.1 - 3.10 for details. * Residual: Fresh milk products. Consumer product: DKK / 1 litre (fat: 3.5 gram and protein: 3.5 gram)Sources: International statistics (FAO, ZMP, USDA, EUROSTAT, FAPRI, IDF, EU Commission, OECD, AMAD, MAD, UNSTAD-TRAINS) and national statistics.Comments: ZMP data for milk production / delivered. The method of the chosen ME overestimates the milk processing category residual and the per capitaconsumption (category residual). Reason: Exports of dairy products in non-specifi ed products like dairy based baby food, special ingredients and convenience food.

1990 1992 1994 1996 1998 2000 2001 2002 2003 2004

163 % 170 % 177 % 165 % 161 % 152 % 151 % 141 % 153 % 149 % 45 % 48 % 50 % 47 % 47 % 47 % 45 % 45 % 48 % 52 % 9 % 12 % 13 % 14 % 14 % 18 % 17 % 21 % 21 % 28 %

Milk pricing of a »typical« processor

Base: 4.2 % fat, 3.4 % protein, per kgValue ration protein / fat: 1 / 7Fat value: + / - 0.194 DKK / unitProtein value: + / - 0.3271 DKK / unit

The principle of pricing is as follows:Milk price ex. farm = Aconto price - year end bonusAconto price = Raw material value + added value + / - quality payments / deductions - fi xed cost / memberRaw material value = Fat value + protein value‚- volume based costs

Added value: Value from processingFixed cost: 300 DKK / 2 weeks for administration, etc.Volume based costs: 12 DKK / 100 kg for transport, storage

at dairy plant, homogenisation and heat treatment.

Milk quality standards

Maximum level (target level)- Bacterial cell count: < 50,000 cells / ml- Somatic cell count: < 400,000 cells / ml- Antibiotics: Not allowed

Penalties- Bact. / som. cell count: Up to -10 % reduction and if three successive times -20 % (4 times: -30 %)- Antibiotics: First time value of 2 day‘s deliveries will be deducted and penalty of 3,000 DKK; this will double each time of observation within 12 successive months.

Quality bonus: Up to 2 % of raw material value if milk

quality is better than target level.

Residual*Condensed milkDry productsButterCheese

Production - milk deliveredResidual*Condensed milk

Dry productsButterCheese

Production - milk delivered


4

Special Studies

4 Special Studies

Additional farm comparisons and analysis

4.1 Comparison of Milk Production in Different World Regions 130

4.2 Comparison of Five Dairy Production Systems 132

4.3 Time Series Analysis of a German and a New Zealand Farm 1996 - 2005 134

4.4 Dairy Production in Four Italian Districts 136

4.5 Recent Trends in African Milk Production Systems 138

4.6 Comparison of an Individual Farm with Farms of the IFCN Database 140

Policy analysis, forecasting work

4.7 Competitiveness of Dairy Farms in Alpine Regions 144

4.8 IFCN Dairy Forecast – Germany 1996 - 2010 146

4.9 Farm Structure in Bulgaria – Perspectives in the EU 148

4.10 Benchmarking 45 Dairy Development Activities in Andhra Pradesh, IN 150

4.11 Development of Milk Regions in Germany – A Processors View 154

Dairy sector and dairy chain analysis

4.12 Analysis of the Peruvian Feed Chain: The Case of Cajamarca 156

4.13 Analysis of Milk Price Development and Dairy Tariffs for 2004 158

4.14 Analysis of the Dairy Chain in Six Countries 160

4.15 Method Approach – Individual Farm Data vs Typical Farm Data 162

Methods improvements

4.16 A Method for Activity Based Cost Analysis in Dairy Farms 164

4.17 Concept of IFCN Cost Analysis after Decoupling of Direct Payments 166

4.18 Method Development: Opportunity Costs & Milk Yield 168

4.19 IFCN Research Approach to Guide Dairy Development Activities 170

Milk production in Western Australia (Photos: Torsten Hemme)Previous pages: Milk production in Denmark (Photos: Torsten Hemme)

Annex

A.1 7th IFCN Dairy Conference 2006 – Szczecin, Poland 178

A.2 Program: 3rd IFCN Dairy Supporter Conference 2005 180

A.3 IFCN Dairy and Participation in Conferences 2005 181

A.4 IFCN Dairy and Participation in Conferences 182

A.5 The IFCN Dairy Team in 2006 (Status July 2006) 184

A.6 IFCN World Dairy Map 185

A.7 IFCN Dairy Publications 186

A.8 Description of Data Collection for Typical Dairy Farms 188

A.9 Description of the Typical Dairy Farms Analysed 189

A.10 Exchange Rates 1996 - 2005 194

A.11 Abbreviations 195

A.12 Assumptions for the Calculations – Farm Economic Indicators 196

A.13 Specifi cation of World Regions 197

A.14 Who is Who 198

Photos: IFCN in action: India, Brazil, Peru, Germany.Previous pages: IFCN being active in Brazil, India, Ukraine and data work in Germany. (Photos: IFCN researchers)

2006





2006


IFCN Supporters

partners of the ifcn dairy network 2006 - c.r.p.a · 3.8 margin in the dairy chain: processing,...

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