EDITORIAL: India Heading to be Leading Dairy Nation

India is expected to become biggest dairying nation within 10 years according to the International Dairy Federation.

In a report to the World Dairy Summit it is predicted that as populations grow and milk production becomes more formal India will rise to the top of global dairying.

The International Dairy Federation previously reported that one in seven of the world's population live on dairy farms and the FAO predicts that over the next 10 years, there will be another billion growth in population, with over 600,000 of this being in Africa and India.

The milk market in these two countries is mainly 'informal' relying on small holders producing single churns of milk in many instances.

Sometimes groups of small holders form a co-op to cater for pasteurisation and better transport of product. The dairy systems can involve cows being tethered in stalls and feed being brought to them or indeed grazed. Calves also tend to be suckled so milk yields are typically 2000 to 3000 litres per year. This milk never gets to a processor, hence it is referred to as informal.

In Brazil, the minister of agriculture, Mendes Ribeiro, has been presented with a list of issues that dairy farmers believe are currently hampering dairying.

The main priority is to maintain bilateral agreements so competitiveness and product competition are not lost. Other demands requested reinforcing sanitary controls of imports and creating export quotas for dairy products to Uruguay.

Globally, the FAO Food Price Index fell by one per cent in October 2012, and for the first 10 months of the year food prices were on average eight per cent lower than in the same period in 2011.

The Index dipped two points to 213 points from September's revised level of 215 points. The decline was largely due to lower international prices of cereals and oils and fats, which more than offset increases in dairy and sugar prices.

Meanwhile, the FAO Food Outlook, a bi-annual global market report, noted that lower international prices and freight rates, together with lower cereal purchases, could push down the world food import bill in 2012.

Global expenditure on food imports was forecast at $1.14 trillion in 2012, 10 per cent lower than last year's record level.