Feed & Additive Magazine Issue 4 May 2021

MARKET REPORT 72 FEED & ADDITIVE MAGAZINE May 2021 OECD-FAO report predicts that cheese consump- tion will increase in areas such as Southeast Asian countries where cheese is not traditionally a part of the national diet. Strong demand growth for butter is also expected in Asia. It is stated that the increase in these regions will be a change in consumption habits, especially due to urbanization and income increases. It is stated that the use of whole milk pow- der (WMP) and skimmed milk powder (SMP) will continue to be used intensively, especially in manu- facturing sectors such as confectionery, baby food, and bakery products. In Africa, where a very limited amount of SMP is produced, the demand for this product is expected to increase rapidly. MILK AND DAIRY PRODUCTS TRADE According to the OECD-FAO report, the propor- tion of milk subject to world trade is around 8 per- cent due to its perishability and high water content. However, it is also stated that China's liquid milk imports from the European Union and New Zealand have increased significantly in recent years. China's fresh dairy imports are expected to increase by 3.6 percent annually over the projection period 2020- 2029. WMP and SMP's share in international trade represents more than 40 percent of world production. The largest exporters in dairy products are the Eu- ropean Union, New Zealand and the US, according to the OECD-FAO report. These three exporters are estimated to export around 65 percent of cheese, 68 percent of WMP, 76 percent of butter, and 77 per- cent of SMP in 2029. It is predicted that Australia, another exporter, will continue to be a major export- er of cheese and SMP, but there will be a decrease in its market share. Argentina, which is an important World milk production is expected to increase by 1.6 percent annually between 2020 and 2029 and reach 997 million tons in 2029, according to OECD-FAO report. It is thought that the growth in herds and especially the increase in yield will be effective in the increase in milk production. Factors such as optimization of milk production systems, improved animal health, improved feeding efficiency, and better genetics are among the factors of productivity growth.