the word dairy refers to milk-based products, derivatives and processes, and the animals and workers involved in their production:

1. ARBA MINCH UNIVERSITY
COLLEGE OFAGRICULTURAL SCIENCE
Department of Animal Science
The Dairy Industry
In The World Economy
By Negesse Gashu
April 2021
Arba Minch, Ethiopia

2. INTRODUCTION
 More than 900 million people are suffering from
hunger on our planet.
 More than 500 million extremely poor people
depend predominantly on livestock and many of
them on small and marginal dairying, be it with
dairy goats or dairy cattle/buffalo.
 This hunger includes chronic food deprivation and
malnutrition in the form of nutrient and
micronutrient deficiencies as well as shortfalls in
vitamins and essential metals.

3. Cont…
 The majority of these people live in low- and middle-
income countries and mostly in rural areas.
 The livestock sector in general, and the dairy sector in
particular, will help address this challenge by
 promoting food security and nutrition,
 sustained economic growth and
 inclusive social development, all while using natural
resources efficiently.
Source ; Bulletin of the international dairy federation (2010)

4. THE GLOBAL DAIRY INDUSTRY
Meaning
 The production of milk on dairy farms and the processing
of milk and milk products at dairy plants make up the dairy
industry.
 Along with producing many kinds of milk,
the industry makes butter, cheese, yogurt, and ice cream.
 the word dairy refers to milk-based products, derivatives
and processes, and the animals and workers involved in
their production:
 for example dairy cattle, dairy goat. A dairy farm produces milk
and a dairy factory processes it into a variety of dairy products.
 These establishments constitute the global dairy industry.

5. Cont…
 The global dairy sector is extremely diverse in terms of
scale, production systems and geography.
 Typically the ‘Dairy Industry’ includes milk production,
processing, sale and consumption of animal milk.
 Globally, cow milk represents 80% of total production in
all regions apart from South Asia where buffaloes are an
important source of milk accounting for 51% of
production (Bizzozero J., 2015)

6. World dairy cattle population
 According to the FAO, the world has 1.468 billion head of
cattle. Brazil has the largest cattle inventory in the world
followed by India and China.
 India has the greatest number of dairy cows in the world
with over 40 million cows
 There are over 264 million cows around the world,
producing nearly 600 million tonnes of milk every year
(FAOstat 2012)

7. Cont…
Top 15 Dairy cow populations in the world
World
Rank
Country Number of
dairy cows
Percentage of world
dairy cow population
1 India 43,600,000 16.5
2 Brazil 22,924,900 8.7
3 Sudan 14,968,800 5.7
4 China 12,503,190 4.7
5 Pakistan 10,100,000 3.8
6 Kenya 9,350,000 3.5
7 United States of
America
9,117,000 3.4
8 Russian Federation 9,022,000 3.4
9 Tanzania 6,900,000 2.6
10 Ethiopia 6,604,300 2.5
11 Colombia 5,300,000 2.0
12 New Zealand 4,680,100 1.8
13 Turkey 4,384,130 1.7
14 Germany 4,183,100 1.6
15 Bangladesh 4,047,000 1.5
World 264,470,504 Source: FAOstat 2012.

8. Dairy For Global Economy
 The global dairy market was valued at 673.8 billion U.S.
dollars in 2019 and was projected to grow to
1032.7 billion U.S. dollars by 2024.
 Dairy farming provides the main income for many
farmers around the world. As such, dairy farming
contributes to several of the 17 global Sustainable
Development Goals (SDG) set by the United Nations

9. Cont…
The global dairy
market was valued
at 673.8 billion
U.S. dollars in 2019
and was projected
to grow to 1032.7
billion U.S. dollars
by 2024.
Source, Statista 2021

10. The global milk production
 The global average for milk production is approximately
2,200 litres per cow (source FAOstat 2012).
 Global milk output in 2018 is estimated at 843 million
tonnes, an increase of 2.2 percent from 2017
 The largest producer of milk is the USA producing over
87 million tonnes per annum(source FAOstat 2012).
 Comparing global regions, Europe accounts for 32% of
world production, the Americas for 27%, Asia for 31%,
Africa for 5%, and Oceania for 4% (Alvåsen, K et al.
2018)

11. Cont…
Top 15 milk producing countries in the world
World
Rank
Country Tonnes of milk Percentage of world milk
production
1 United States of
America
87,461,300 14.6
2 India 50,300,000 8.4
3 China 36,036,086 6.0
4 Russian Federation 31,895,100 5.3
5 Brazil 31,667,600 5.3
6 Germany 29,628,900 4.9
7 France 23,301,200 3.9
8 New Zealand 17,010,500 2.8
9 United Kingdom 13,960,000 2.3
10 Turkey 12,480,100 2.1
11 Pakistan 12,437,000 2.1
12 Poland 12,278,700 2.0
13 Netherlands 11,631,000 1.9
14 Ukraine 10,977,200 1.8
15 Mexico 10,676,700 1.8
World 599,438,003
Source: FAOstat 2012.

12. Cont…
Americas
29%
Europe
42%
Asia
21%
Oceania Africa
4% 4%
Production of milk around the world by region
(Average 1992 - 2010)
Source FAOstat 2012

13. Cont…
The leading producer of
cow milk worldwide
was the European Union
in 2020.
In that year, the 28
countries of the
European Union
collectively produced
about 157.5 million
metric tons of cow milk.
The United States came
in second with a
production volume of
around 101 million
metric tons.
Source, Statista 2021

14. Global Dairy For creating Job Opportunity
 Dairy producers are often organized in cooperatives or
liaise with other value chain actors to process and sale
milk and dairy products to consumers.
 At global level, skimmed milk (75%), cheese (12%) and
butter (3%) represent over 90% of all processed milk.
 Processing activities, from pasteurization to yogurt
manufacturing, not only add value to raw milk but also
create jobs.
 With an estimated 150 million dairy farms worldwide, it
is likely that the dairy sector supports the livelihoods of
up to one billion people worldwide (Bulletin of the
international dairy federation, 2010)

15. Cont…
 Evidence from Bangladesh, Kenya and Ghana suggests
that for every 100 litres of milk traded between 1.2 and
5.7 full time jobs are created.
 In Great Britain, there are about 13,000 dairy farms that
create a total of 28,000 full-time jobs only at farm level.
 The 6,200 Australian dairy farms generate about 39,000
full-time jobs. The over 736 Chinese dairy enterprises
employ over 270,000 people.
Source Bulletin of the international dairy federation, (2010)

16. Global dairy product consumption
 The global average of whole milk consumption in 2007
was 50kg/capita/yr,
 The average consumption for cheese was
2.84kg/capita/yr and
 Consumption for butter was 1.32kg/capita/yr (Source:
FAOstat).

17. Cont…

18. Challenges Of The Global Dairy Industry
 Globally, the dairy sector is probably one of the most
distorted agricultural sectors:
 shortage of feed,
 health problem,
 water scarcity and
 labor scarcity were major challenges which affect
dairy cattle production and productivity.