Milk Research

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International Trade of Milk and Milk Products| Fall semester 2012/2013ECON 181Kamala CalanitGSI: Megan Siems| Name: BUTTARI GUIDO
Student ID: 24116642| October 08-2012|

INTRODUCTION
Milk is ancient as mankind itself; many centuries ago humans learned how to consume the milk of other mammals following the domestication of different species of animals. These included cows, sheep, buffaloes, goats and camels, all still used today for human consumption. This development occurred independently in several parts of the world starting in Southwest Asia perhaps as early as 8000-6000 BC. In 1863 a great invention, the pasteurization, allowed to kill harmful bacteria in milk and milk products while in 1884 an American inventor, Hervey Thatcher, invented the first glass milk bottle (called “Thatcher’s Common Sense Milk Jar). The first plastic-coated bottles were introduced commercially in 1932. CONSUMPION WORLDWIDE

Today there are more than 6 billion consumers of milk and milk products throughout the world even if the role of milk in the traditional diet is greatly different among regions; the majority of the consumers are in the developing countries but milk and its derivatives have not been a traditional food in tropical countries as they have been in northern regions of the world (Europe and North America). The reason for that is primary the difference in temperatures and in the possibilities of refrigeration. It is estimated that 12 to 14 percent of the world population, more than 750 million people, live within dairy farming households; for all these reason and for its prospective important role in improving nutrition, particularly in developing countries, milk is a good medium to reduce poverty and malnutrition in the world. As said before the total milk consumption, as fluid milk and its products, per person is not homogeneously distributed in the world even if the trend descript before is going to change and the market for milk is expanding in several places worldwide: over the past two decades, all developing country regions have seen an expansion in per capita consumption of dairy products. Increasing affluence in developing countries has led to a rise of milk consumption in recent years and these growing markets have attracted investment by multinational dairy firms; however, production in the majority of these countries remains on a small scale.

Per Capita consumption of Milk and Milk products in various countries, 2006 data.| Country| Liquid Milk Drinks (Litres)| Cheeses (kg)| Butter (kg)| Finland| 183.9| 19.1| 5.3|
Sweden| 145.5| 18.5| 1.0|
Ireland| 129.8| 10.5| 2.9|
Netherlands| 122.9| 20.4| 3.3|
Norway| 116.7| 16.0| 4.3|
Spain (2005)| 119.1| 9.6| 1.0|
Switzerland| 112.5| 22.2| 5.6|
United Kingdom (2005)| 111.2| 12.2| 3.7|
Australia (2005)| 106.3| 11.7| 3.7|
Canada (2005)| 94.7| 12.2| 3.3|
European Union (25 countries)| 92.6| 18.4| 4.2|
Germany| 92.3| 22.4| 6.4|
France| 92.2| 23.9| 7.3|
New Zealand (2005)| 90.0| 7.1| 6.3|
United States| 83.9| 16.0| 2.1|
Austria| 80.2| 18.8| 4.3|
Greece| 69.0| 28.9| 0.7|
Argentina (2005)| 65.8| 10.7| 0.7|
Italy| 57.3| 23.7| 2.8|
Mexico| 40.7| 2.1| N/A|
China (2005)| 8.8| N/A| N/A|
| | | |
Source: International Dairy Federation, Bulletin 423/2007.|

PRODUCTION
In 2010 the largest producer of milk and milk products was India followed by USA, China, Germany, Pakistan and Russia. The 27 countries of the European Union together produced about 138 million tones of milk in 2011. India is also the largest consumer of milk, yet neither exports nor imports milk. On the other hand New Zealand, The EU 27 member states, Australia and the US are the world’s largest exporters while China and Russia are the world’s largest importers of milk and milk products. Dairy and other livestock products have a high income-elasticity of demand,...
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