Summary
Table of contents
Discover this week’s news from the global dairy market! In India, Creamy Foods finishes the works on the largest UHT dairy plant. Nigeria wants to increase milk production with the ‘Value4Dairy’ initiative. While the UK faces harsh dairy exports, Ukraine opens to a new market in Libya. In Norway, pandemic propelled milk consumption.
In February 2020 Indian key player in the dairy sector – Creamy Foods, signed a contract to build a new plant for UHT dairy production which is now in its final stage. The company chose a German supplier GEA to deliver the innovative equipment to their facility in Uttar Pradesh where sustainability and efficiency are key targets. The plant is expected to recover 88% of the heat used for the production while processing 15,000 liters of milk per hour, rendering the facility one of the largest ones in the Indian dairy sector.
The Nigerian government has set an ambitious goal to boost domestic milk production from 600,000 metric tonnes to 1,700,000 metric tonnes by 2024 as the country makes dairy purchases for an average of $ 1.5 billion annually. In order to meet the target, privately-owned key players joined the initiative and formed a program dubbed ‘Value4Dairy’. FrieslandCampina WAMCO, URUS, Barenbrug, and Agrifirm joined forces to share their long-term experience and expertise along with innovative resources. The partnership is focusing on developing an efficient, independent, and attractive domestic dairy sector in Nigeria. Moreover, FrieslandCampina WAMCO is currently working on opening the Centre for Nigerian Dutch Dairy Development (CNDDD) specializing in training and research for the dairy market.
The Ukrainian governmental portal announced a new market for the export of domestic dairy products – Libya. The two countries approved a new bilateral form of a veterinary certificate allowing for the shipments of Ukrainian dairy goods to Libya. Previously, the partners agreed on similar forms of international certificates for exports of cattle, poultry, and poultry produce. Moreover, there are ongoing discussions on the possibility of exporting grains, sunflower oil, fruits, and berry products.
Before the pandemic disrupted the dairy market, milk consumption was steadily declining in Norway which resulted in a governmental plan to buy out the milk quotas from around 400 businesses. However, during the pandemic, the consumer habits shifted toward increased consumption of traditional products, including dairy goods which led to increased production. In 2020, the total yield of cow’s milk grew by 16,2 million liters compared to 1,480.5 million liters the year before. As of March 2021, the number of dairy cows grew by 2.6% compared to the same period last year and now amounts to 213,200. The number of dairy goats also increased by 0.7% to a total of 35,972.
The United Kingdom continues to note a significant decrease in dairy trade with the EU. In January-February 2021, the overall value of exported dairy products and eggs from the UK to the member states decreased by 39% in comparison to the same period last year. The decline was seen within the entire dairy sector: in terms of volume buttermilk and yogurt shipments dropped by 91% from last year’s figures, butter and whey products noted a decrease of 89% and 83% respectively while cheese deliveries were cut by 75%.
Creamy Foods to launch one of the largest UHT dairy lines in India
In February 2020 Indian key player in the dairy sector – Creamy Foods, signed a contract to build a new plant for UHT dairy production which is now in its final stage. The company chose a German supplier GEA to deliver the innovative equipment to their facility in Uttar Pradesh where sustainability and efficiency are key targets. The plant is expected to recover 88% of the heat used for the production while processing 15,000 liters of milk per hour, rendering the facility one of the largest ones in the Indian dairy sector.
Strategic partnerships to propel dairy self-sufficiency in Nigeria
The Nigerian government has set an ambitious goal to boost domestic milk production from 600,000 metric tonnes to 1,700,000 metric tonnes by 2024 as the country makes dairy purchases for an average of $ 1.5 billion annually. In order to meet the target, privately-owned key players joined the initiative and formed a program dubbed ‘Value4Dairy’. FrieslandCampina WAMCO, URUS, Barenbrug, and Agrifirm joined forces to share their long-term experience and expertise along with innovative resources. The partnership is focusing on developing an efficient, independent, and attractive domestic dairy sector in Nigeria. Moreover, FrieslandCampina WAMCO is currently working on opening the Centre for Nigerian Dutch Dairy Development (CNDDD) specializing in training and research for the dairy market.
Ukraine plans dairy exports to Libya
The Ukrainian governmental portal announced a new market for the export of domestic dairy products – Libya. The two countries approved a new bilateral form of a veterinary certificate allowing for the shipments of Ukrainian dairy goods to Libya. Previously, the partners agreed on similar forms of international certificates for exports of cattle, poultry, and poultry produce. Moreover, there are ongoing discussions on the possibility of exporting grains, sunflower oil, fruits, and berry products.
Unexpected growth in Norwegian milk consumption
Before the pandemic disrupted the dairy market, milk consumption was steadily declining in Norway which resulted in a governmental plan to buy out the milk quotas from around 400 businesses. However, during the pandemic, the consumer habits shifted toward increased consumption of traditional products, including dairy goods which led to increased production. In 2020, the total yield of cow’s milk grew by 16,2 million liters compared to 1,480.5 million liters the year before. As of March 2021, the number of dairy cows grew by 2.6% compared to the same period last year and now amounts to 213,200. The number of dairy goats also increased by 0.7% to a total of 35,972.
Harsh drop in year-on-year UK dairy exports to the EU
The United Kingdom continues to note a significant decrease in dairy trade with the EU. In January-February 2021, the overall value of exported dairy products and eggs from the UK to the member states decreased by 39% in comparison to the same period last year. The decline was seen within the entire dairy sector: in terms of volume buttermilk and yogurt shipments dropped by 91% from last year’s figures, butter and whey products noted a decrease of 89% and 83% respectively while cheese deliveries were cut by 75%.
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