A steady rise in consumption demand for dairy and allied products has led to higher levels of technology adoption among the major dairy producing countries in the world. The global dairy industry is anticipated to clock a turnover worth USD 335.8 billion in 2014. With a Compound Annual Growth Rate (CAGR) of 5 percent, the industry is expected to generate revenues worth USD 442.32 billion in 2019.
Negatively impacted by the global economic crisis of 2009, the dairy industry worldwide suffered a major setback. The growth of milk production dropped below one percent and the demand for dairy products slowed down significantly during the period. However, the industry is on the path to recovery. Asia continues to dominate the global dairy market. China, India and countries in South East Asiaaccount for a major portion of the global dairy industry, but milk supply in these regions has not been able to keep pace with the level of growing demand. These markets offer huge potential for dairy companies that are looking to meet the global demand for dairy products.
Global milk production was estimated at 650 million tonnes in 2013; it rose with a CAGR of 2 percent. Overall production is projected to reach 732 million tonnes in 2019. Apart
from a few exceptions in Europe such as Russia and Ukraine, milk production has increased significantly in almost all the countries around the world. Cow milk represents nearly 80 percent of global milk production. As compared to cow milk, buffalo milk is produced in fewer countries; it is estimated that more than 80 percent of the world's total buffalo milk is produced in India and Pakistan.
The North American dairy industry is dominated by the United States of America, followed by Canada and Mexico. In 2011, market revenues in the USA stood at USD 48,506.40 million. It is projected that the USA will lead the North American Free Trade Agreement (NAFTA) bloc by clocking revenues worth USD 56,851.60 million in 2016. Brazil and Argentina are the leading milk procuring countries in the region, with Chile and Uruguay are slowly emerging as significant contributors to the South America Dairy Industry.
Milk and allied dairy products is one of the major constituents of the animal husbandry industry in Russia. In value terms, Russia'sdairy industry accounts for nearly 40 percent of the gross product of animal husbandry. The Russian Federation is the fifth largest milk producer, globally, after India, the United States, China and Pakistan.
Asia remains one of the most diverse regions in the world in terms of economic growth, with changing food consumption preferences and relative availability of resources, both human and environmental. From being a laggard and a dairy products importing nation in the 1960's, today India has come a long way to become one of the leading milk producing countries in the world. In its quest for self reliance, the Indian dairy industry undertook structural changes and milk production increased four-folds over the last four decades
According to the World Bank, long-term demand for food and dairy products is anticipated to rise significantly, thereby resulting in price volatility. The dairy sector is especially anticipated to experience erratic movement in prices in the coming years. According to a World Bank Survey, developing and emerging countries have largely contributed to world wealth growth in the last decade. Although developed countries had been the major contributors till 2005, the period between 2000-2010 witnessed significant contributions from the BRIC (Brazil, Russia, India and China) region. This rise of these developing countries has played a crucial role in the growth of the global dairy sector.