Dairy Report 2019 tr a - IFCN Dairy Research Network

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Dairy Report 2019 tr a - IFCN Dairy Research Network
Ex
                       tra
                          ct
   Dairy Report 2019
   For a better
   understanding of
   the dairy world

   20th Anniversary Edition

IFCN
The Dairy Research Network
Dairy Report 2019 tr a - IFCN Dairy Research Network
Introduction

                                                          Dear Friends,
 This IFCN Dairy Report 2019 compiles in a most comprehensive overview,
    the status of the dairy world and gives insights into the IFCN Research.

The IFCN Mission and Vision
IFCN Mission: We create a better understanding
of the dairy world by providing comparable
data, knowledge and inspiration.

IFCN Content updates 2019                                                      Status of the IFCN Research Network in 2019
Solid Corrected Milk (SCM): IFCN has implemented a new standar-                The dairy sector analysis covered over 200 countries. In the farm com-
disation methodology of milk content. SCM reflects the content of the           parison, 176 typical dairy farms from 67 dairy regions and 54 countries
produced milk better, as fat and protein are weighted equally.                 were analysed. In 2019 the research network grew substantially via new
                                                                               countries in farm and dairy sector analysis.
Farm economics: Special attention was given to the following areas:
typical farm representativeness, robotic milking systems, calculation of
                                                                               IFCN Dairy Report 2019
resilience and sustainability of dairy farms.
                                                                               Chapter 1: Cost comparison summarises results on costs, returns,
The dairy sector: To understand the dairy world better, it is important        profitability and productivity of dairy farms worldwide. A special focus
to observe the global dairy market and its short-term milk production          lies on sustainability and resilience of dairy farms this year.
outlook. By monitoring the market monthly and forecasting milk
                                                                               Chapter 2: Global monitoring provides a broad overview on speci-
supply, price and farm economics for the global market, IFCN can draw
                                                                               fic dairy issues such as milk prices, feed prices and milk:feed price ratio
conclusions on milk supply and milk price trends and drivers for the
                                                                               and monthly milk price transmission this year.
next 12 months.
                                                                               Chapter 3: Milk Production fact sheets prepared for 120 countries,
Outlook 2040: As dairy business is changing very rapidly, IFCN has
                                                                               representing 98% of world milk production with comparable informa-
developed scenarios for the long-term outlook of the dairy world for
                                                                               tion on:
over 200 countries until 2040.
                                                                               •   Milk density and milk movements in countries
Highlights – IFCN events in 2019                                               •   Dairy farm numbers and farm size trends
                                                                               •   Dairy farm structure analysis and trends
IFCN Dairy Conference 2019                                                     •   Price analysis for milk, beef, feed and land
The focus of this conference was „Changing dairy world:
                                                                               Moreover, the key results are summarised at the beginning of the
2000 – 2020 – 2040“ with a focus on „special types of milk“.
                                                                               chapter via world maps.
DMK hosted this event in Berlin, Germany, in June.
                                                                               Chapter 4: IFCN Methods: This chapter is dedicated to explain the
IFCN Supporter Conference 2019                                                 methods used for the IFCN Analyses. Moreover it highlights the
This event was held in September in Brno,                                      following topics: a) robotic milking systems, b) reviewing the water
Czech Republic. The topic explored „Special types                              footprint methodology, c) monthly supply forecast model, and d) deve-
of milk – Complexities and Opportunities“.                                     lopment of elevator stories to understand more clearly what a typical
Brazzale was the event hosting partner.                                        farm represents in a country.

IFCN Data Analysis Workshop 2019
                                                                               Acknowledgement
The workshop took place for the first time to transmit profound
                                                                               We would like to thank all IFCN Research Partners, Supporter Partners,
knowledge and thorough information on the (background) framework
                                                                               Institutional Partners and the colleagues working in the IFCN Dairy
and development of the dairy market to novices in the field of dairy
                                                                               Research Centre during the last 20 years. It was a pleasure to work
economics.
                                                                               with you and strengthen the network in 2019. We are looking forward
                                                                               to our activities in 2020.
IFCN Regional Workshop 2019
This workshop, the 8th of its series, will be organised in Bangalore, India
from 15th to 16th October. The focus will be to define Dairy 2.0 for the
Indian dairy. The event will be sponsored Kemin, ITC Limited, Prognosis,
and ST Genetics.

                                                                               Anders Fagerberg                        Torsten Hemme
                                                                               Chairman of the IFCN Board              Managing Director

       © IFCN Dairy Report 2019                                                                                                                             2
Dairy Report 2019 tr a - IFCN Dairy Research Network
Participating dairy economicsts / co-editors of the IFCN Dairy Report

                   Dairy Expert                                                                                                                                       Dairy Expert

Djellali Abderrazak | Horizons                           Steve Couture | Dairy Farmers                  Hauke Tergast | Johann Heinrich von            Stepan Ten | Dairy Consultant, Kostanay,
Agro-alimentaires, Gouraya, Algeria                      of Canada, Ottawa, Canada                      Thünen Institute, Braunschweig, Germany        Kazakhstan

Hugo Quattrochi | Unión Productores de                                                                  Éva Vöneki, Dániel Mándi-Nagy |
                                                         Mario E. Olivares | Cooprinsem, Osorno,                                                       Renars Sturmanis | Latvian Rural
Leche Cuenca Mar y Sierras, Tandil, Argentina                                                           Research Institute of Agricultural Economics
                                                         Chile                                                                                         Advisory and Training Centre, Ozolnieki,
                                                                                                        (AKI), Budapest, Hungary
                                                                                                                                                       Latvia
                                                                        Dairy Consultant
                                                                                                                        BINSAR FARMS
                                                                                                                          CREAMERY

Lusine Tadevosyan, Vardan Urutyan |
ICARE, Yerevan, Armenia                                  Sam Shi | Dairy Consultant, Beijing, China
                                                                                                        Pankaj Navani | Binsar Farms Pvt. Ltd.
                                                                                                        Janti Khurd, Haryana, India                    Benas Kryževičius | UAB „Linas Agro“
                                                                                                                                                       Konsultacijos, Panevėžys, Lithuania

Jon Hauser | Xcheque Pty Ltd, Glen Alvie,                Dou Ming, Zhao Hengxin | Beijing Orient
Victoria, Australia                                      Dairy Consultants Ltd, Beijing, China
                                                                                                        Gunjan Bhandari | National Dairy
                                                                                                        Research Institute, Karnal, India
                                                                                                                                                       Monja Majerus | Ministère de l’Agriculture,
                                                                                                                                                       de la Viticulture et du Développement rural,
                                                                                                                                                       Luxembourg, Luxembourg
Josef Hambrusch, Leopold Kirner |
                                                         Liu Changquan | Sino-Dutch Dairy
Federal Institute of Agricultural Economics, Rural and
                                                         Development Center, Beijing, China
Mountain Research, Vienna, Austria
                                                                                                        G. Chokkalingam | National Dairy De-
                                                                                                        velopment Board, Anand, Gujarat, India

                                                                                                                                                       José Luis Dávalos Flores | National
                                                                                                                                                       Autonomous University of Mexico,
Mohammad Mohi Uddin | Bangladesh                         Enrique Ortega, René A. Pérez R. |                                                            Tequisquiapan, Mexico
Agricultural University, Mymensingh,                     Consejo Nacional de la Calidad de la Leche y
Bangladesh                                               Prevención de la Mastitis, Bogotá, Colombia    Ali Sadeghi-Sefidmazgi | Isfahan
                                                                                                        University of Technology, Isfahan, Iran

                                                                                                                                                       Rigoberto Becerra | Establo Gibraltar,
                                                                                                                                                       Gomez Palacio, Durango, Mexico
Anatoli Takun, Sviatlana Takun |                         Iveta Bošková | ÚZEI, Prague,
The Institute of System Research in                      Czech Republic                                 Farhad Mirzaei | Iranian Association for
Agroindustrial Complex of NAS, Minsk, Belarus                                                           Animal Production Management, Karaj, Iran

                                                                                                                                                       Nicola Shadbolt | Massey University,
                                                                                                                                                       Palmerston North, New Zealand
Joeri Deuninck | Department of Agricul-                  Morten Nyland Christensen | SEGES,
                                                         Aarhus, Denmark                                Fiona Thorne | Teagasc, Dublin, Ireland
ture and Fisheries, Knowledge Quality
and Fisheries Division, Brussel, Belgium

                                                                                                                                                       Olusegun Oloruntobi | MoreMeat-
                                                                                                        Liron Tamir | Israel Dairy Board,              MoreMilk Initiative for Development,
                                                         Adel Khattab, Wael Nagy | Tanta
                                                                                                        Rishon-Le'Zion, Israel                         Adamasingba, Ibadan, Nigeria
Lorildo A. Stock | Embrapa,                              University, Tanta, Egypt
Juiz de Fora, Minas Gerais, Brazil

                                                                                                        Alberto Menghi | Centro Ricerche
                                                         Olli Niskanen | Natural Resources                                                             Ola Flaten, Bjørn Gunnar Hansen |
Natália Grigol, Sergio de Zen |                                                                         Produzioni Animali, Reggio Emilia, Italy
                                                         Institute Finland (LUKE), Helsinki, Finland                                                   NIBIO, Ås, Norway
CEPEA, Sao Paulo, Brazil

                                                                                                        Hironobu Takeshita | J-milk, Japan Milk
Festus Kongyu Ali | University of                        Benoît Rubin | Institut de l’Elevage,          Academic Alliance, Nagoya University,          Waseem Shaukat | Solve Agri (Private)
Dschang, Bafoussam, Cameroon                             Derval, France                                 Tokyo, Japan                                   Limited, Lahore, Pakistan

3                                                                                                                                                          © IFCN Dairy Report 2019
Dairy Report 2019 tr a - IFCN Dairy Research Network
Participating dairy economicsts / co-editors of the IFCN Dairy Report

                                                                                                  Researchers participating only in the country profile
                                                                                                  analysis or in specific country information:

                                                                                                  Shakirullah Akhtar | Dairy Expert,          Mc Loyd Banda | Department of Agricu-
Carlos A. Gomez | Universidad                   Muhittin Özder, Selçuk Akkaya |
                                                                                                  Afghanistan                                 ltural Research Services Bunda College,
Nacional Agraria La Molina, Lima,               Turkish Milk Council, Ankara, Turkey
                                                                                                                                              Lilongwe, Malawi
Peru                                                                                              Ilir Kapaj | Agricultural University,
                                                                                                  Tirana, Albania                             Anjas Asmara Samsudin | Universiti
                                                                                                                                              Putra, Selangor, Malaysia
                                                                                                  Helen Quinn | Dairy Australia, Victoria,
                                                                                                  Southbank, Australia                        Anatolie Ignat, Eugenia Lucasenco |
                                                                                                                                              National Istitute for Economic
                                                Steven Aikiriza | SNV, Kampala, Uganda            Jafar Jafarov | Azerbaijan State            Research, Chisinau, Moldova
Ewa Kołoszycz | West Pomeranian                                                                   Agriculture University, Ganja, Azerbaijan
University of Technology, Szczecin,                                                                                                           Mohamed Taher Sraïri | Institut
                                                                                                  Erwin Wauters | Institute for               Agronomique et Vétérinaire Hassan II, Rabat, Morocco
Poland
                                                                                                  Agricultural and Fisheries Research,
                                                                                                  Merelbeke, Belgium                          Rein van der Hoek | International
                                                                                                                                              Center for Tropical Agriculture, Mana-
                                                Olga Kozak | National Scientific                   Tashi Samdup, N. B. Tamang |                gua, Nicaragua
                                                Centre, Institute of Agrarian                     Department of Livestock, Ministry of
                                                Economics, Kyiv, Ukraine                          Agriculture & Forests, Thimphu, Bhutan      Naomi K. Torreta, Maria Carmen
Vladimir Surovtsev, Mikhail Ponomarev,                                                                                                        A. Briones | National Dairy Authority,
                                                                                                  Felix Menzel | Dairy Expert, Mezza          Quezon City, Philippines
Julia Nikulina | Northwest Research Institute
                                                                                                  Sucre, Bolivia
of Economics and Organization of Agricul-                                                                                                     António Moitinho Rodrigues | School
ture, St. Petersburg, Russian Federation                                                          Konstantin Stankov | Trakia                 of Agriculture – Polytechic Institute of
                                                                                                  University, Stara Zagora, Bulgaria          Castelo Branco, Portugal
                                                Mark Topliff | Agriculture & Horticulture
               LLC Streda                       Development Board, Kenilworth,                    Henri Bayemi | Institute of Agricultural    Guillermo Ortiz Colon | Dairy Expert,
               Consulting                       Warwickshire, United Kingdom                      Research for Development (IRAD),            Mayagüez, Puerto Rico
                                                                                                  Yaoundé, Cameroon
                                                                                                                                              Rodica Chetroiu | Institute for Agricu-
Artyom Belov | LLC Streda Consulting,                                                             Francisco José Arias Cordero | Dos          lture Economy and Rural Development
Moscow, Russian Federation                                                                        Pinos, Alajuela, Costa Rica                 (ICEADR), Bucharest, Romania
                                                                                                  Rodrigo Gallegos | Centro de la             Michael Mishchenko | Dairy Intel-
                                                Jorge Artagaveytia, Ana Pedemonte |               Industria Láctea, Quito, Ecuador            ligence Agency, Moscow, Russian
                                                Instituto Nacional de la Leche, Montevi-                                                      Federation
                                                                                                  Katri Kall | Estonian University of Life
                                                deo, Uruguay
                                                                                                  Sciences, Tartu, Estonia                    John Musemakweli | Rwanda National
Rade Popovic | University of Novi Sad,                                                            Jean-Marc Chaumet | Institut de             Dairy Platform, Kigali, Rwanda
Subotica, Serbia                                                                                  L‘Elevage, Paris, France                    Christian Corniaux | CIRAD / PPZS,
                                                                                                  Giorgi Khatiashvili | Caucasus              Dakar Etoile, Senegal
                                                                                                  Genetics ,Tbilisi, Georgia                  Ben Moljk | Agricultural Institute
                                                Hernan Tejeda | University of Idaho, Idaho, USA
                                                                                                  Łukasz Wyrzykowski | IFCN, Kiel,            of Slovenia, Ljubljana, Slovenia
                                                                                                  Germany                                     Seung Yong Park | Yonam College,
Bertus van Heerden | Milk Producers‘                                                                                                          Cheonon, South Korea
                                                                                                  Irene Tzouramani | Agriculture
Organisation, Pretoria, South Africa
                                                                                                  Economics Research Institute (AGRERI),      Hemali Kothalawala | Department
                                                                                                  Hellenic Agriculture Organization –         of Animal Production and Health,
                                                Robert Hagevoort | New Mexico State               DEMETER, Athens, Greece                     Peradeniya, Sri Lanka
                                                University, New Mexico, USA
                                                                                                  Bjarni Ragnar Brynjólfsson |                Nazar Omer Hassan Salih |
                                                                                                  Icelandic Dairies Association,              Al - Neelain University, Khartoum,
National Network Team (J. Llorente,                                                               Reykjavík, Iceland                          Sudan
C. García, A. García, P. García) | TRAGSATEC                                                      Marjuki | Brawijaya University,             Uliana Rusetska | Swedish University
& Ministerio de Agricultura, Pesca y                                                              Malang, Indonesia                           of Agricultural Sciences, Uppsala,
Alimentación, Madrid, Spain                     Bill Zweigbaum | Farm Credit East,                                                            Sweden
                                                Greenwich, New York, USA                          Othman Alqaisi | Sultan Qaboos
                                                                                                  University, Muscat, Oman, Jordan            Juliane Liu | Forefront Enterprise Co.
                                                                                                                                              Ltd., Taipei, Taiwan
                                                                                                  Francis Karin | Egerton University,
                                                                                                  Rongia, Nakuru, Kenya                       Valery Sonola | Livestock
                                                                                                                                              Training Agency, Tanzania
Christian Gazzarin | Agroscope, Tänikon,                                                          Azat Mukaliev | Kyrgyz State
Switzerland                                     Mark Stephenson | University of                   Agricultural University, Bishkek,           Adul Vangtal | Thai Holstein Friesian
                                                Wisconsin, Wisconsin, USA                         Kyrgyzstan                                  Association (T.H.A.), Rajburi, Thailand
                                                                                                  Agnese Krievina, Andris Miglavs |           Yana Muzychenko | Association
                                                                                                  Institute of Agricultural Resources and     of Milk Producers, Umam, Ukraine
                                                                                                  Economics (AREI), Riga, Latvia
                                                                                                                                              Muzaffar Yunusov | IFCN, Kiel, Germany,
                                                                                                  Ghassan Antoine Sayegh | Middle East        Uzbekistan
Michel de Haan | WUR, Wageningen
                                                Paidamoyo Patience Chadoka | Zimbabwe             Agrifood Publishers, Lebanon
Livestock Research, Wageningen,                                                                                                               Vu Ngoc Quynh | Vietnam Dairy
The Netherlands                                 Association of Dairy Farmers, Harare,
                                                                                                  Deiva Mikelionyte | Lithuanian              Association, Hanoi, Vietnam
                                                Zimbabwe
                                                                                                  Institute of Agrarian Economics,
               Dairy Consultant                                                                   Vilnius, Lithuania                          Abdulkarim Abdulmageed Amad |
                                                                                                                                              Thamar University, Dhamar, Yemen
                                                                                                  Blagica Sekovska | Veterinary
                                                                                                  Faculty, Institute for Food, Skopje,        Rob Jansen-van Vuuren,
                                                                                                                                              Addmore Waniwa | Livestock
                                                                                                  Macedonia
Dhiaeddine M‘Hamed | Dairy Expert,                                                                                                            Consultant, Department of Livestock
Saliman, Tunisia                                                                                                                              & Veterinary Services, Zimbabwe

          © IFCN Dairy Report 2019                                                                                                                                                              4
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To our partners

IFCN Dairy Conferences

2nd IFCN Dairy Conference 2001 in Braunschweig, Germany   7th IFCN Dairy Conference 2006 in Szczecin, Poland

10th IFCN Dairy Conference 2009 in Tumba, Sweden          19th IFCN Dairy Conference 2018 in Cork, Ireland

IFCN Supporter Conferences

5th IFCN Supporter Conference 2006 in Brussels, Belgium   10th IFCN Supporter Conference 2011 in Monastier Treviso, Italy

14th IFCN Supporter Conference 2015 in Minneapolis, USA   17th IFCN Supporter Conference 2018 in Parma, Italy

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Dairy Report 2019 tr a - IFCN Dairy Research Network
To our partners

       Dear IFCN Partners and friends,

       This year, we proudly celebrate the 20 years anniversary of the IFCN.

       Conceptualised by Torsten Hemme as a young PhD scholar in 1996, the idea of
       benchmarking farms worldwide has flourished into a community of global dairy
       experts, researchers, institutions and companies.

       In these years IFCN has strived to create a better understanding of the dairy world
       and has stood by its values of trust, truth and independence.

       In 2019, dairy researchers from more than 100 countries and 141 agribusiness
       companies and institutions are part of the network.

       This feat has only been possible with your valuable cooperation and selfless
       contribution. We at IFCN are overwhelmed and would like to thank you for your trust
       and commitment. By exchanging data and sharing the generated knowledge, each
       of you supports dairy development in your country. It is a pleasure to work with you.

       We enter the third decade in joyful anticipation of what lies ahead. There will be more
       challenges and changes in the dairy world which the IFCN will analyse and forecast.
       Overcoming these challenges is a task that we can only master if we share our
       knowledge, exchange ideas and cooperate with each other.

       Without you, valued researchers, supporter partners and friends, the IFCN would
       not be where it is today. With excitement, we are looking forward to the next 20 years
       with you.

       Thank you for being a vital part of IFCN.

       With best regards,
       The IFCN Team

© IFCN Dairy Report 2019                                                                             6
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Dairy Report 2019 – Table of Contents

Serbia

       Preface                                                         2      Global monitoring of dairy economic indicators
       20 Years of IFCN                                           8           1996 – 2018
       IFCN Dairy Report – Development 2000 – 2019               10    2.1    Summary: Monitoring dairy economic indicators                   55
       Regional maps and the typical farms                       11    2.2    Global trends in oil, milk and feed prices 1981 – 2019          57
       About IFCN                                                12    2.3    National farm gate milk prices in 2018 in USD                   58
       IFCN Dairy Research Center and IFCN Board                 13    2.4    Monitoring feed prices and milk: feed price ratio 1996 – 2018   59
       20th IFCN Dairy Conference 2019                           14    2.5    Monitoring milk prices 1996 – 2018                              60
       Results from the IFCN Dairy Conference 2019               15    2.6    Monthly milk prices transmission and farm economics             62
       16th IFCN Supporter Conference 2018                       16    2.7    IFCN Long-term Dairy Outlook 2019                               64
       Results from the IFCN Supporter Conference 2018           17
       7th IFCN Regional Workshop 2018                           18    3      Status and development of milk production
       1th IFCN Data Workshop 2019                               19    3.1    Summary: Dairy sector development in the past 20 years          68
       IFCN Supporter Partenship and IFCN Data Products          20    3.2    Status and centres of milk production 2018                      70
       Introduction of Product 4.4 Short-term Outlook            21    3.3    Development of milk production 1998-2018                        71
                                                                       3.4    Milk surplus and deficit in 2018                                 72
1      Comparison of the typical farms 2018                            3.5    Cow culling and land prices in selected countries               74
1.1    Summary – Farm comparison 2018                             23   3.6    Farm Structure-Dairy farm numbers and IFCN Standard size
1.2    Milk supply curves 2018                                    24          classes 2018                                                    75
1.3    Cost of milk production on average sized                        3.7    Method explanation of the Country Page 2019                     78
       and larger farms 2018                                      25
1.4    Farm level time series analysis 2000 – 2019                            Country Pages – Dairy sector and chain profiles
       – Cost of milk production only                             26   3.8    EU-28                   79     3.31   Croatia               102
1.5    Description of the dairy farms analysed                    28   3.9    Afghanistan             80     3.32   Cuba                  103
1.6    Summary on economic results of the typical farms           30   3.10   Albania                 81     3.33   Cyprus                104
1.7    Cost of milk production only                               32   3.11   Algeria                 82     3.34   Czech Republic        105
1.8    Total costs and returns of the dairy enterprise            33   3.12   Argentina               83     3.35   Denmark               106
1.9    Returns: Milk price, non-milk returns                           3.13   Armenia                 84     3.36   Dominican Republic    107
       and decoupled payments                                     34   3.14   Australia               85     3.37   Ecuador               108
1.10   Dairy enterprise: Profits, return to labour                      3.15   Austria                 86     3.38   Egypt                 109
       and asset structure                                        35   3.16   Azerbaijan              87     3.39   Estonia               110
1.11   Description of direct subsidies and policies               36   3.17   Bangladesh              88     3.40   Ethiopia              111
1.12   Summary on cost components of the dairy enterprise 38           3.18   Belarus                 89     3.41   Finland               112
1.13   Cost components of the dairy enterprise                    40   3.19   Belgium                 90     3.42   France                113
1.14   Cost component: Feed                                       41   3.20   Bhutan                  91     3.43   The Gambia            114
1.15   Cost component: Labour                                     42   3.21   Bolivia                 92     3.44   Georgia               115
1.16   Cost component: Land                                       43   3.22   Bosnia-Herzegovina      93     3.45   Germany               116
1.17   Cost component: Animal health and herd replacement 44           3.23   Brazil                  94     3.46   Greece                117
1.18   Overview of all typical farms analysis – costs and returns 45   3.24   Bulgaria                95     3.47   Guatemala             118
1.19   New typical farms results – IFCN Farm Comparison                3.25   Cameroon                96     3.48   Honduras              119
       Research Network                                           47   3.26   Canada                  97     3.49   Hungary               120
1.20   Sustainability and resilience of typical farms             48   3.27   Chile                   98     3.50   Iceland               121
1.21   Sustainability of selected farms                           50   3.28   China                   99     3.51   India                 122
1.22   Resilience of selected farms                               51   3.29   Colombia               100     3.52   Indonesia             123
                                                                       3.30   Costa Rica             101     3.53   Iran                  124

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Dairy Report 2019 – Table of Contents

                                                                                                                         Serbia

3.54   Ireland              125   3.98 Rwanda            169   4     Methods applied in IFCN Analyses
3.55   Israel               126   3.99 Saudi Arabia      170   4.1   The TIPICAL model and its capabilities                 201
3.56   Italy                127   3.100 Senegal          171   4.2   IFCN Special Study: Robotic milking systems            202
3.57   Jamaica              128   3.101 Serbia           172   4.3   IFCN Special Study: Review of water footprint
3.58   Japan                129   3.102 Slovakia         173         methodology                                            203
3.59   Jordan               130   3.103 Slovenia         174   4.4   Standardisation used by IFCN                           204
3.60   Kazakhstan           131   3.104 South Africa     175   4.5   Typical farm approach                                  205
3.61   Kenya                132   3.105 Spain            176   4.6   Details on farm economic analysis                      206
3.62   Korea, Republic of   133   3.106 Sri Lanka        177
3.63   Kyrgyzstan           134   3.107 Sudan            178
                                                                     Annex
3.64   Latvia               135   3.108 Sweden           179
                                                               A.1   IFCN Publications                                      212
3.65   Lebanon              136   3.109 Switzerland      180
                                                               A.2   Glossary                                               213
3.66   Lithuania            137   3.110 Taiwan           181
                                                               A.3   Typical farm approach and data quality assessment      214
3.67   Luxembourg           138   3.111 Tajikistan       182
                                                               A.4   Elevator stories of typical farms                      215
3.68   Macedonia            139   3.112 Tanzania         183
                                                               A.5   Description of the typical dairy farms analysed        217
3.69   Madagascar           140   3.113 Thailand         184
                                                               A.6   Abbreviations                                          222
3.70   Malawi               141   3.114 Tunisia          185
                                                               A.7   Exchange rates 1996 – 2018                             223
3.71   Malaysia             142   3.115 Turkey           186
                                                               A.8   Who is who                                             224
3.72   Malta                143   3.116 Turkmenistan     187
3.73   Mexico               144   3.117 Uganda           188
3.74   Moldova              145   3.118 Ukraine          189
3.75   Mongolia             146   3.119 United Kingdom   190
3.76   Morocco              147   3.120 Uruguay          191
3.77   Mozambique           148   3.121 USA              192
3.78   Myanmar              149   3.122 Uzbekistan       193
3.79   Namibia              150   3.123 Venezuela        194
3.80   Nepal                151   3.124 Vietnam          195
3.81   The Netherlands      152   3.125 Yemen            199
3.82   New Zealand          153   3.126 Zambia           197
3.83   Nicaragua            154   3.127 Zimbabwe         198
3.84   Nigeria              155
3.85   Norway               156
3.86   Oman                 157
3.87   Pakistan             158
3.88   Panama               159
3.89   Paraguay             160
3.90   Peru                 161
3.91   Philippines          162
3.92   Poland               163
3.93   Portugal             164
3.94   Puerto Rico          165
3.95   Qatar                166
3.96   Romania              167                                                                                          Serbia
3.97   Russian Federation   168

       © IFCN Dairy Report 2019                                                                                               8
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20 Years of IFCN

THE
IFCN TIMELINE
Born and brought up to a dairy farm in Northern Germany, Torsten Hemme showed a passionate interest
for dairy at an early age. He travelled internationally and had the opportunity to work on different kinds of
dairy farms. As his experience grew, so did his curiosity to understand more thoroughly the various dairy
farming systems which existed in different continents.

Thus the research question was born:
How to create a better understanding of milk production world-wide?
                                                         orld-wide?

                                                                                   2003
                                                                                   IFCN highlights cooper-
                              1999                                                 ation with companies
                                                                                   on Dairy Report –
                              Torsten’s PhD study                                  6 Supporter companies.
                              finalised – method base
                              for IFCN.

                                                                                                                2006
                                                                                                                New Home: IFCN
                                                        2000                                                    moves to Kiel.

    1994                                                First IFCN Dairy confer-
                                                        ence organized and
    Torsten started his PhD                             First IFCN Dairy Report
    at Thünen Institute. In                             published with eight
    his research work, he                               countries.
    developed the TIPICAL
    model which is now a
    standard for dairy farm
    economics. The idea of
    a network of research-
    ers was born to have an
    ongoing benchmarking
    of dairy farms.

9                                                                                                      © IFCN Dairy Report 2019
Dairy Report 2019 tr a - IFCN Dairy Research Network
20 Years of IFCN

                                                          2019
2010                              IFCN
                                   AG
                                                          IFCN is a thriving
                                                          network of researchers
First strategy review                                     from over 100 countries
in IFCN to create more                                    as well as 141 company
transparency, develop                                     and institutional partners.
a sustainable business
model and modify the
leadership.

                                                                                        2025
                                                                                        We help people in the

                              2014                                                      dairy world with dairy data,
                                                                                        knowledge and inspiration
                              Second strategy                                           to make better decisions.
                              review for the period of
                              2014 – 2019 to better
                              structure its coopera-
                              tion with researchers and
                              companies.

   © IFCN Dairy Report 2019                                                                                                    
IFCN Dairy Report – Developments 2000 – 2019

Which countries are participating in the IFCN Dairy Report activities in 2019?

                                                      54 countries analysed in the Farm Comparison
                                                      62+ countries participated in the Country Pages

Number of countries included             Number of countries included                   Number of farm types analysed
in farm comparison                       in country profile analysis
60                                      140                                             200
                                  54                                                                                               176
                                                                              120       180
                                        120
50
                                                                                        160

                                        100                                             140
40
                                                                                        120
                                         80
30                                                                                      100
                                         60
                                                                                         80
20
                                         40                                              60

                                                                                         40
10
                                         20
                                                                                         20

0                                        0                                               0
     2000
     2001
     2002
     2003
     2004
     2005
     2006
     2007
     2008
     2009
     2010
     2011
     2012
     2013
     2014
     2015
     2016
     2017
     2018
     2019

                                                                                              2000
                                                                                              2001
                                                                                              2002
                                                                                              2003
                                                                                              2004
                                                                                              2005
                                                                                              2006
                                                                                              2007
                                                                                              2008
                                                                                              2009
                                                                                              2010
                                                                                              2011
                                                                                              2012
                                                                                              2013
                                                                                              2014
                                                                                              2015
                                                                                              2016
                                                                                              2017
                                                                                              2018
                                                                                              2019
                                              2000
                                              2001
                                              2002
                                              2003
                                              2004
                                              2005
                                              2006
                                              2007
                                              2008
                                              2009
                                              2010
                                              2011
                                              2012
                                              2013
                                              2014
                                              2015
                                              2016
                                              2017
                                              2018
                                              2019

     Germany

1                                                                                                      © IFCN Dairy Report 2019
Regional maps and the typical farms

                          North America

                                                                                   Michigan (MI)
                        Canada                                                         1200
                        85, 147
Idaho (ID)                 Minnesota (MN)                                                             Europe and Middle East
1200, 2600                       206
California (CA)                 Wisconsin(WI)
    1100                            80, 500                                         Germany
                                                                                                                                               Finland
                                                                             30 S, 80 S, 110 S, 151 N,                     Poland
                       New Mexico (NM)                                                                     Norway                             28, 77, 138
                                                                              289 N, 700 E, 1200 E                      16 E, 25, 52 N,
                            2272                                                                            22, 41      65 S, 75, 221 N
                                                                                                                                                       Latvia
                                                                                                Denmark
                                                                              UK                                                                     34,140, 218
                                                                                                190, 350
                                                                            160 NW,
                          Mexico                       New York (NY)        259 SW       NL
                           23 JA                        65, 450, 2350                  101, 249
                           33 JA                                                                                                               Lithuania             Russia
                          1000 TO                                                                                                               485, 862          230W, 850 NW,
                          2000 TO                                       Ireland                                                                                 850 NW++, 850NW--
                                                                         76, 148                                                                 Belarus
                                                                                                                                                1024, 1474
                                                                 Belgium
                                                                 40N, 95N                                                  Hungary Ukraine                                            Kazakhstan
                                                                                                                           159, 850 300, 1000           Armenia                        260, 350,
                                                                 Luxembourg
              South America                                         69, 176                                                         Serbia                4,50                           420
                                                                                                                                   2, 10, 84
                                                                                                                                        Turkey
                                                             Spain                                                                      15, 100
                                                         84 NW, 80 CN,                                                                                                     Iran
                                                                                      Switzerland
                                                         97 S, 180 NW                                                                                                     90, 120,
                                                                            France 15 bio, 20, 64                           Czech                                        276, 458,
        Colombia                                                            38 MC,               Italy                    Republic                                        1150IS
      6, 100 DP, 105                                                      66 W, 100 C            154, Austria            85, 293, 787
                                                                                                  229 18-bio,
                                                    Brazil                                              68                                 Israel
                                                  34 S, 56 S                                                                              118, 474
               Peru                              111 S, 350 S
               7, 17                            180 SE, 320 SE
                                                     57 S

                  Chile             Argentina
                    63              180, 400,
                   112               280, 600                                                         South East Asia and Oceania
                   447
                  426++                          Uruguay
                                                   129                                                   Assam                                                     China North
                                                   367                                                     2, 6                                                    289 N, 2250 N
                                                                                             Uttar Pradesh
                                                                                                  2, 4
                                                                              Haryana
                                                                                                                      Inner Mongolia                                         Japan
                                                                             2, 20, 70 CF,
                                                                                                                           60 IM Beijing                                     41, 79
                                                                                300 CF                                           320 BE,
                                                                                                                                 1710 BE
         Africa
                              Tunisia                                       Pakistan                       India
                          2, 4, 5, 12, 290                                  6, 25, 100
                                                 Egypt                                   Gujarat
                                                5 B, 5, 10                                2, 8                     Bangladesh
                                                                                             Karnataka                2, 14
              Algeria                                                                                              Odisha
               6, 18                                                                            2, 6
                                                                                                                     2, 5

                                                             Uganda
                                                             1, 3, 13

                                                                                                                      Indonesia
                                                                                                                     3MG, 3MG++,                             Australia
         Nigeria                                                  Kenya                                             10MG, 10MG++
          5, 205                                                                                                                                               279
                                                                   2, 8                                                                                        393
             Cameroon
               25, 50                                                                                                                                                           New Zealand
                                                                                                                                                                                 408, 1027
            Zimbabwe
              99, 440

                                                                          Legend: Numbers indicate the number of cows in the typical farms.
                                                                          ++ = future farm, B = Buffalo, BE = Beijing, bio = Organic, C = Central,
                                                                          CF = Commercial Farm, CN = Central North, DP = Dual Purpose, E = East, JA = Jalisco,
          South Africa                                                    MC = Massif Central, MG=Malang, N = North, NW = North West, S = South, SE = South East,
          230, 650, 800
                                                                          SW = South West, TO = Torréon, W = West

       © IFCN Dairy Report 2019                                                                                                                                                               1
About IFCN

The dairy world today
Today the dairy world serves over 7 billion consumers and provides           IFCN Vision
livelihoods for approximately 1 billion people living on dairy farms.        We are the leading, global knowledge organisation
The key challenges for the dairy stakeholders lie in its complexity and      in milk production, milk prices and related dairy
the high rate of change in a globalised world.                               economic topics.

About IFCN
IFCN is a global dairy research network. By addressing challenges
in the dairy world, IFCN can contribute to a more resilient and more         IFCN Mission
sustainable future for all of us.                                            We create a better understanding of the dairy
                                                                             world by providing comparable data, knowledge
What does IFCN do?                                                           and inspiration.
IFCN provides globally comparable dairy data, outstanding know-
ledge and inspiration to stretch one’s imagination. Its core com-
petence lies in the field of milk production, milk prices and related
economic topics.

                                                                             Dairy data: We provide globally comparable dairy
                                                                             economic data and forecasts.

                                                                             Knowledge: We create knowledge out of our data, models
                                                                             and analysis. Our core competence is in the field of milk
                                                                             production, milk prices and related economic topics.

                                                                             Inspiration: We inspire people in the dairy world to build
                                                                             a better future. We inspire passionate people to develop a
                                                                             successful career in the dairy world.

                                                                          What does IFCN offer stakeholders in the dairy chain
How does IFCN operate?                                                    1. Farmers: IFCN gives you a voice to reach other players in the
                                                                             dairy world. Up to date global milk and feed price trends and
IFCN creates a better understanding of the global dairy world. The
                                                                             helpful IFCN Publications are presented on the IFCN Website.
IFCN – International Farm Comparison Network – started in 2000
                                                                             Farm comparison work allows you to judge the competitive po-
with basic analytics. Step by step the knowledge bases are being
                                                                             sition of milk production in your region.
deepened and widened every year.
                                                                          2. Researchers and advisors: IFCN makes you part of the leading
Knowledge is created via a network of dairy researchers from over
                                                                             global dairy network. IFCN helps to serve your dairy stakehol-
100 countries. The data and knowledge are managed and analysed
                                                                             ders better and to develop your professional career in the dairy
by the IFCN Dairy Research Centre staff.
                                                                             world while strengthening your dairy economics profile in your
The IFCN Economic Models and standards ensure comparability                  country.
between countries and provide a global picture.
                                                                          3. Companies: IFCN provides dairy related companies such as
More than 141 dairy related companies and organisations support              milk processors and farm input companies, a comprehensive
the IFCN and use the knowledge to solve challenges in the dairy              and continuously updated picture of the dairy world. We help
world better.                                                                you develop your business.

IFCN has innovative ways to share this knowledge with its partners        4. Global and national organisations involved in policy-ma-
and with the dairy world as a whole. The IFCN Events are a key ele-          king for agriculture, environment and food supply: IFCN
ment in developing the network spirit.                                       provides holistic dairy knowledge to be used for your policy de-
                                                                             cisions and conferences.
IFCN Values: Trust – Independence – Truth
                                                                          5. Consumers: IFCN illustrates milk-production, its fascinating di-
Trust among the IFCN Partners is vital for open sharing, cooperation
                                                                             versity and value creation in rural areas.
and a network that really works. The IFCN is independent from third
parties and is committed to truth, science and reliability of results.    6. Colleagues in the IFCN Centre: You are invited to build a life
Truth means that IFCN shows the dairy world as it is and as accu-            time career in the IFCN Centre to operate globally and enjoy a
rately as measurements allow. IFCN describes realities and reports           stable local life. You are also welcome to use IFCN as the ideal
without having any hidden agendas.                                           stepping stone for further developments in the dairy world.

                                                                          For further information please contact: info@ifcndairy.org

1                                                                                                             © IFCN Dairy Report 2019
IFCN Dairy Research Center and IFCN Board

Organisational setup
IFCN stands for International Farm Comparison Network and is a global dairy research network. The IFCN has a Dairy Research Center (DRC)
with 23 employees coordinating the network process and running dairy research activities.

Managing
Director          Network Management

Torsten           Saleh          Prashant      Muzaffar       Annika          Zarif     Paloma        Deniz      Birte
Hemme             Amiralai       Tripathi      Yunusov       Jarrens         Omid      Wulf - Bock   Gencoglu   Petersen

Dairy Analysis Team

Łukasz           Katrin        Mateusz        Marieke       Oybek          Amit      Philipp         Dorothee    Maria      Anna-Maria
Wyrzykowski      Reincke       Węgrzynowski   Fischer       Kalandarov     Saha      Goetz           Bölling     Schmeer    Woehl

                  Office Management

Karin             Sandra         Franziska
Wesseling         Bornhöft       Rekow

 IFCN Dairy Research Center                                    IFCN Board

The IFCN Board has the mandate to support the IFCN management in the strategic development and guarantee transparency in the operation
to the members of the network.

The IFCN Board is composed of the following members: Anders Fagerberg (chairman), Hans Jörn (nominated by the supporters), Ernesto Reyes
(nominated by the researchers), Uwe Latacz-Lohmann (Kiel University), Olaf Rosenbaum (legal and fiscal expertise) and Torsten Hemme (Mana-
ging Director IFCN).

Anders           Ernesto       Hans Jörn      Uwe Latacz-   Olaf           Torsten
Fagerberg        Reyes         Morelon        Lohmann       Rosenbaum      Hemme
Chairman

          © IFCN Dairy Report 2019                                                                                                       1
20th IFCN Dairy Conference in Berlin, Germany, June 15 – 19, 2019

Changing dairy world: 2000 – 2020 – 2040, with a focus on special types of milk

The 20th IFCN Dairy Conference 2019 in Berlin, Germany, brought together 85 dairy economists and experts
representing 48 countries. The conference was proudly hosted by DMK and sponsored by Hochland.

 Monday, June 17                                  Tuesday, June 18                                Wednesday, June 19
 DAIRY WORLD STATUS                               SPECIAL TYPES OF MILK                           DAIRY OUTLOOK

 20 years IFCN                                    From the farmer to the consumer                 Dairy outlook
 • History of IFCN                                • Different types of milk and milk products      • Dairy development’s impact on poverty
 • IFCN Researchers’ Network 2020/2025            • Challenges and opportunities for processors     reduction (E. Reyes, GDP)
                                                    (P. Hildebrandt, DMK)                         • 20 years backwards, 20 years forward for
 Global picture on dairy markets
                                                  • Current and future trends in dairy consump-     the dairy industry (R. Erhard, Nestlé)
 • Flashback: 20 years of dairy market –
                                                    tion (A. Capkovicova, European Commission)    • IFCN Long-term Dairy Outlook 2040
   (un)foreseen drivers and trends
                                                  • Panel: Perception of milk from the farmer     • IFCN Short-term Dairy Outlook 2020
 • 20 years from country perspective – game
                                                    to the consumer                               • IFCN Way forward 2020/2025
   changers of the dairy market (IFCN Partners)
                                                  Milk = Milk?                                    Summing up and closing
 Global picture on dairy farms
                                                  • Trends on “special” milk in different
 • 20 years of dairy farming – global dairy
                                                    countries (IFCN Partners)
   production systems and farm structure
 • Dairy production systems around the world      Workshop
   – key drivers for farm development (IFCN       • Complexity and opportunities of special
   Partners)                                        types of milk

 Network evening                                  Exhibition of posters and milk packages
                                                  IFCN 20th Anniversary celebration

1                                                                                                               © IFCN Dairy Report 2019
Results from IFCN Dairy Conference

Complexity and opportunities of special types of milk:                        Opportunities of special milk
Results from the 20th IFCN Dairy Conference 2019                              As the next step, participants brainstormed on country specific success
                                                                              stories where value has been generated with special types of milk. Here
Complexity and opportunities of special milk                                  are some examples:
Consumer demand for special types of milk is rising. Therefore, the 20th
                                                                              •   Alpro (BE+DE), ne moloko (RU), Oatly: plant-based milk
IFCN Dairy Conference has put a key focus on different types of milk and
                                                                              •   Fairlife (US): ultra-filtered milk
their challenges, complexities and opportunities. During intense days of
                                                                              •   Parag (IN): milk quality and branding and delivery
discussion between IFCN Researchers and representatives from internati-
                                                                              •   Hemme Milch (DE): regional milk
onal companies, it became clear that trust and transparency are important
                                                                              •   The A2 milk company (NZ): A2 milk
for promoting dairy. IFCN thanks host DMK and sponsor Hochland.
                                                                              •   Ornua, Kerrygold (IE): grazing and sustainability

Definition of special milk
IFCN defines special milk as value-added cow milk and milk alternatives.
Special types of milk are clustered in three main categories:

• Milk from different sources (type of animals, plant-based milk, synthetic
  milk, etc.)
• Milk generated with different farming practices (organic, GMO-free, etc.)
• Different ways of processing and packaging (composition of liquid milk)

Animal based dairy products will stay most popular
Annually IFCN attempts to define the status quo of current develop-
ments by means of an opinion survey and, in this way, catch a glimpse
into the future of dairy farming. The 2019 results of the opinion survey
(n = 50 different countries) show that animal based dairy products will
outlive alternative kinds of „milk“.                                              KEY CONCLUSIONS

                                                                                  Participants furthermore brainstormed on country specific success
                                                                                  stories to draw key conclusions. IFCN Research Partners agreed that:
                                                                                  • Special milk products remain a small market portion: Sales of
                                                                                    plant-based drinks are growing fast both in value and volume but so
                                                                                    far, they remain a small market portion. In 2018, they represented a
                                                                                    4% share on cow milk based dairy product volume sales.
                                                                                  • Differentiation creates value for the early adopters: Opportuni-
                                                                                    ties in special milk production exist. Differentiation of milk adds and
                                                                                    creates additional value.
                                                                                  • Organic and local milk are appreciated by consumers as special
                                                                                    milk: Organic milk is well accepted by consumers. Also, local milk plays
                                                                                    an important role. Vertical integration is an opportunity especially for
                                                                                    small-scale farmers to sell milk directly to consumers (“from grass to
                                                                                    finished milk”). Consumers want to support their neighbourhood and
Workshop on special milk
                                                                                    know the source of the products. Partners state that consumers’ de-
The conference participants, divided into working groups, identified milks
                                                                                    mand is driven by the wish for protecting the environment and animals.
that consumers in their country see at the moment as most exciting be-
                                                                                  • Emotional stories touch consumers more than facts: Plant based
sides conventional milk. According to the partners’ opinions, the following
                                                                                    products are coupled with a specific way of life like sports, freedom,
special milk types are currently mostly demanded worldwide (ranked):
                                                                                    animal welfare. It is important to promote local and vertical produ-
1. Organic milk                                                                     ced milk which consumers can link to products coming from known
                                                                                    source and production standards. Trust and transparency are very
2. Plant based “milk” (soy, almond, rice, oat, etc.)
                                                                                    important – however, emotional stories often win over facts. In the
3. Regional / my farm milk                                                          long-term, it is important to promote real value-added products
                                                                                    with impactful campaigns and simple messages.
4. Milk from other animals (sheep, goat, buffalo, etc.)

5. Grazing milk
                                                                              Exhibition of milk packages
                                                 th
Source: HEMME T (2019): Outcome Paper from the 20 IFCN Dairy Conference.      To obtain insights into the different packaging used worldwide, participants
https://ifcndairy.org/press/                                                  brought milk packages from their countries which were presented in an exhibition.

        © IFCN Dairy Report 2019                                                                                                                            1
16th IFCN Supporter Conference in Parma, Italy, September 11 – 13, 2018

How will big data change dairy farming and the supply chain in the future?

The 16th IFCN Supporter Conference was held in Parma, Italia. More than
120 participants from 88 dairy related companies attended the conference
which was hosted by Cargill. Allflex Livestock Intelligence and Dairy
Data Warehouse acted as gold sponsors. Also, Growsafe and Connecterra
participated with their support to make this event a great success.

 Tuesday, September 11                             Wednesday, September 12                         Thursday, September 13
 THE DAIRY WORLD IN 2018                           BIG DATA IN MILK PRODUCTION                     VISION TALKS

 Pre Conference:                                   Big data in milk production                     Vision talks
                                                   • Technology disruption and industry            • Think wider: The IFCN Dairy Long-term
 Understanding industry‘s needs
                                                     adoption – Finisterre Ventures                  Outlook 2030
 towards IFCN
                                                   • Digital dairies and the future of protein -   • Beyond digital technologies: getting ready
 • IFCN – The company and their products
                                                     Cainthus Technologies                           for the digital transformation of the dairy
 • IFCN Monthly Real Time Farm Economics –
                                                   • Unleash the power of BIG dairy data –           industry – Cargill
   new development of tools
                                                     Dairy Data Warehouse
                                                                                                   Panel Session: Processors perspective
 Official start of the conference                  • Everyone should be ruminating on this data
                                                                                                   towards 2030
 • Welcome to the 16th IFCN Supporter Conference     – Allflex
                                                                                                   • Condensing complexity – what really mat-
                                                   • A New Data Paradigm – Growsafe
 The dairy world today                                                                               ters for your company in the future
 • The dairy world in 2018                         Panel Session: Innovators for disruptive        • How to win the future with big data – what
 • IFCN Monthly Real Time Data – What are the      technologies                                      to consider most!
   latest developments?
                                                   Workshop Session: Truth and myth of big         Reporting session
 • IFCN short-term Dairy Outlook 2019
                                                   data in milk production
 • Farm technology past, present and future                                                        Summing up and closing
 • Working groups: which aspects of milk pro-      See, feel and smell big data on an Italian
   duction will be affected most by big data?       150 – cow farm

 Networking evening                                Networking evening

1                                                                                                                © IFCN Dairy Report 2019
Results from the IFCN Supporter Conference

What makes a dairy region successful? Results from the                         • Progress on farm technology could attract successors and bring new
IFCN Supporter Conference 2018                                                   people into the sector.
Big data in agriculture describes large sets of data that are generated on     • Predictability of milk production on farm level will improve the farmers´
farms. Big data is becoming more important due to the increasing use of          operations and planning.
emerging technologies that create data, such as sensors and cameras.           • A shift from a herd approach to an individual cow treatment will improve
However, simply storing the data is not enough. As seen in different con-         animal welfare.
ference presentations, data becomes useful when it is analysed computa-        • A holistic system at farm level will drive efficiency improvements and
tionally to reveal patterns, trends, and associations, especially related to     financial optimization.
behaviour and interactions. All this data, combined with advanced data
platforms, can create new value for cows, farmers, processors and con-         Key take away messages
sumers, by providing insights that can enhance animal productivity and         • Big data is the future: Big data combined with advanced informati-
comfort while also driving incremental value and transparency.                   on platforms will create value along the whole dairy chain, affecting
                                                                                 cows, farmers, companies and consumers.
                                                                               • Transform digitally or die: Technology will speed up the consolida-
                                                                                 tion process by increasing the gap between smaller farms and farms
                                                                                 that adopt technology.
                                                                               • Transparency is a driver: Big data increases transparency and is one
                                                                                 of the major drivers for productivity gains. It shows potential to relo-
                                                                                 cate profits towards farmers and input providers.
                                                                               • Paving the way for sustainability: Big data will lead to value creati-
The workshops – ”Impact of big data on dairy farming“ and ”Truth and             on, productivity gains and animal welfare improvement by optimized
myth of big data“ inspired the participants to think beyond the current          management and operations resulting in great steps towards sustai-
status of the dairy sector. The future impact possibilities of big data on       nability.
dairy farming was discussed in the workshop. Moreover, ideas and opi-          • Gain in efficiency shows huge potential: Big data will increase the
nions were shared on how the dairy sector could change in the next de-           efficiency at farm level by monitoring processes and optimizing ope-
cade. It was agreed that the whole supply chain needs to be prepared             rations.
for the future and that new technologies should be found with an open          • Consumer trust can be gained: Traceability and transparency of in-
mindset and a clear strategy.                                                    formation is the key to convince consumers of the high value within
                                                                                 the dairy sector and its products.
Opinions on big data and dairy:                                                • Big data brings potential for decision making: Using new tech-
• The most limiting factor of big data is the lack of acceptance by famers       nologies, farmers will be enabled to base their decision on facts and
  as well as non-compatible technology.                                          information retrieved from big data rather than gut feelings.
• Data gathered through technology will be owned by farmers.
• Efficiency gains by big data in the dairy sector will be around 20% or
  higher.
• Biggest benefit of big data in the dairy sector is being able to make
  objective and transparent decisions.
• Europe and North America will be the regions most positively affected
  by the use of big data.
• Dairy farming will not mainly be run by Artificial Intelligence before
  2050
• The leadership role in bringing big data forward will be taken by tech-
  companies.
• The leadership role should be taken from established companies and
  leading farms.

Opportunities faced by companies and farms:
The future impact possibilities of big data on dairy farming was discussed
in the workshop. Moreover, ideas and opinions were shared on how the
dairy sector could change in the next decade. It was agreed that the
whole supply chain needs to be prepared for the future and that new              KEY ACTIONS
technologies should be found with an open mind
• Transparency supports cost reduction. Benchmarking and decision ma-            Actions to be taken by companies in the perspectives:
   king for all stakeholders.                                                    • Move mindsets.
• Technologisation in agriculture lags behind. Lessons should be learnt          • From silo to system.
   from other sectors.                                                           • Build platforms.
• Big data can contribute to gain consumer trust by proving the social           • Investments need to be made.
   impact of dairy.                                                              • Providing objective evidence by big data.
• Transparency will drive sustainability and give the social license and         • Define the data language in your company.
   acceptance to producers.

       © IFCN Dairy Report 2019                                                                                                                        1
7th IFCN Regional Workshop in Pune, India, November 28 – 29, 2018

Milk Quality and exports potential of India

This IFCN Regional Workshop took place in Pune, Maha-         in India has not been done. The working groups also
rashtra; more than 80 participants, representing various      came up with the following recommendations:
aspects of the dairy value chain, took part of the discus-
sions and the group working sessions. The focus of the        1. Defining nationwide unified milk quality stan-
                                                                                                                                               ®
workshop was the Milk Quality and exports potential of           dards with which all the stakeholders of the dairy
India. This topic was intensively discussed by the parti-        value chain agree as well as aligning sets of defini-
cipants. The workshop provided a suitable platform for           tions on milk quality and minimum standards.
participants to exchange experiences and discuss vari-
                                                              2. Incentive program to encourage production and
ous approaches for obtaining better milk quality and
                                                                 transportation of quality milk.
achieving exports potential in India. Presentations by
IFCN researchers and agribusiness-related companies           3. Rejection: Development and implementation of in-
introduced the topic. A panel of representatives of dif-         dustrial norms for rejection of poor quality/adultera-
ferent aspects of the dairy value chains was also very           ted milk and penalization for deliberate inclusion of
well received.                                                   additives.
                                                              4. Control: Setting up minimum acceptance rate of
Working in groups, the participants highlighted the key
                                                                 drug residues, aflatoxins and detergents.
drivers for the milk quality issues in India, including ha-
ving no nationwide definition of milk quality along the        5. Implementation: The dairy sector stakeholder
supply chain ie. at the farm gate, factory gate and at the       should agree on the formulation, implementation
point of sale/consumer. Neither governments nor the              and adherence of the milk quality improvement plan
processors have defined the minimum industry stan-                with a certain flexibility during an adjustment period.
dards for milk procurement. Another problem is India´s
fragmented production structure which is a major cau-         IFCN also recommended that India should have a milk
se of quality deterioration.                                  quality crisis management plan. The workshop was
                                                              proudly hosted by Schreiber Dynamix and sponsored
The workshop also highlighted the fact that a real root       by Kemin, Prabhat, Neogen and Promethean Power
cause analysis for the prevalent milk quality problems        Systems.

1                                                                                                                  © IFCN Dairy Report 2019
1st IFCN Data Analysis Workshop in Amsterdam, The Netherlands, April 17, 2019

Dairy economics is more than just the price of milk

This first IFCN Data Analysis Workshop took place in Amsterdam, The Netherlands.
It was attended by 12 participants from different dairy related companies, institutions and institutes.

 Wednesday, April 17
 IFCN DATA ANALYSIS WORKSHOP

 Introduction to dairy economics
 • Introduction: workshop overview                                  Feedback: ”Great interaction,            Feedback: ”Time series of farm level
 • What does data analysis mean for IFCN?                           engaged team“.                           data and price transmission was
 • Drivers of the world milk price                                                                           inspirational“.

 Networking lunch
 • How IFCN data can answer research questions
                                                                    Feedback: ”Explanation of ECM,           Feedback: ”Farm labour costs
 • Dairy farm sustainability & resilience
                                                                    SCM, World milk price, Typical farms“.   explanation was interesting“.
 • Dairy farm economics knowledge versus market knowledge
 • Future of IFCN data

       © IFCN Dairy Report 2019                                                                                                                     
IFCN Supporter Partnership and IFCN Data Products

P – IFCN Supporter Partnership Packages
Today the dairy world serves over 7 billion consumers and provides live-   Main benefits of the partnership:
lihoods for approximately 1 billion people living on dairy farms. The
                                                                           • Global holistic picture            • Better analysis: no wasting
key challenges for the dairy stakeholders lie in its complexity and the
                                                                                                                  time
high rate of change in a globalized world. More than 120 dairy rela-       • Networking with dairy chain
ted companies are contributing to IFCN which is a global dairy related       companies                          • World class dairy business
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providing globally comparable dairy economic data and even forecasts
since 2000.                                                                • Better data: comparable,
                                                                             globally & real time

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IFCN Milk Production Outlook Webinar                                                                                             Main befits of the product
The webinar is an innovative service providing milk supply projections for                                                       • Monitor dairy market drivers in real-time for growth of
the next 12 months. It offers results of the IFCN milk supply outlook model                                                         your sales numbers
along with possible world milk price developments based on Futures (CME,                                                         • Enhance your risk management by better evaluating
EEX, NZX). Forecast of milk production at steady prices and evaluation of                                                          milk price trends
the trends of the world milk price for the next few months makes the dairy                                                       • Design suitable short-term actions with a better understanding
market trajectories more comprehensible. This excellent service permits                                                            of the national markets
the user to have an overview of the current dairy market situation and to
also track the underlying factors for more than 60 countries.

Change in milk production in % YoY                                                                                               IFCN World Milk Price Indicator based on Future Prices
                                                                                                                                 (ONLY Butter + SMP)
               % YoY change (world excl IN&PK)                % YoY change (world)
 6%                                                                                                                              44
 5%                                                                                                                                                                 IFCN World Milk Price                                     EU Market - EEX
                                                                                                                                 42
 4%                                                                                                                                                                 NZ Market - NZX                                           USA Market - CME
 3%                                                                                                                              40
 2%                                                                                                                              38
 1%
 0%                                                                                                                              36
-1%                                                                                                                              34
-2%
-3%                                                                                                                              32
-4%                                                                                                                              30
      Jan-07

                 Jan-08

                          Jan-09

                                   Jan-10

                                            Jan-11

                                                     Jan-12

                                                                Jan-13

                                                                          Jan-14

                                                                                   Jan-15

                                                                                            Jan-16

                                                                                                     Jan-17

                                                                                                              Jan-18

                                                                                                                       Jan-19

                                                                                                                                           Jan-17

                                                                                                                                                                                                               Jan-18

                                                                                                                                                                                                                                                                                       Jan-19
                                                                                                                                                                                         Jul-17

                                                                                                                                                                                                                                                          Jul-18

                                                                                                                                                                                                                                                                                                                                            Jul-19
Key variables                                                                                                                    Technical Details
• World milk production forecast                                         • Farm economics status & forecast                      Format: PDF & audio recorded file                                                                                                  Duration: 30 – 45 minutes
• World milk and feed price forecast                                     • Maps & charts with key                                Delivery: Quarterly                                                                                                               Price: Free for Premium & Ultimate
• Next 12 months drivers of supply                                         informaton                                            Coverage: 64 countries                                                                                                            IFCN Partners

                                                                                                                                          Change in Germany milk production                                           Milk prices in Germany in EUR /                                                  Milk contents on monthly data
Monthly Real Time Data incl. farm economics                                                                                               on monthly basis                                                            100 kg SCM                                                                       in Germany
                                                                                                                                                    % change to previous year                                                   National milk price                                                                      monthly fat value in %

This real time product delivers data on milk production, milk & feed prices                                                     7%
                                                                                                                                                    Average annual % change
                                                                                                                                                                                                              45
                                                                                                                                                                                                                                IFCN Combined World Milk Price Indicator
                                                                                                                                                                                                                                                                                                4.5%
                                                                                                                                                                                                                                                                                                                         mothly protein value in %

and describes the current situation and on-going development on dairy                                                           5%
                                                                                                                                                                                                              40                                                                                4.3%

markets to optimise short-term operational business processes on a global                                                                                                                                     35                                                                                4.1%
                                                                                                                                3%                                                                            30
and on a country level. A summary with the key message and IFCN Ana-                                                                                                                                          25
                                                                                                                                                                                                                                                                                                3.9%

                                                                                                                                                                                                                                                                                                3.7%
lysis are send with this data product. Data provide real-time situation of                                                      1%
                                                                                                                                                                                                              20
                                                                                                                                                                                                                                                                                                3.5%
the dairy market with price analysis, making anticipating short-term shifts                                                     -1%                                                                           15
                                                                                                                                                                                                                                                                                                3.3%
                                                                                                                                                                                                              10
and changes in the dairy markets easier. This year additional information                                                       -3%
                                                                                                                                                                                                                                                                                                3.1%
                                                                                                                                                                                                                  5
on fat and protein production has also been added to the data. Sample                                                           -5%                                                                               0                                                                             2.9%
                                                                                                                                       Jan-07
                                                                                                                                       Jan-08
                                                                                                                                       Jan-09
                                                                                                                                       Jan-10
                                                                                                                                       Jan-11
                                                                                                                                       Jan-12
                                                                                                                                       Jan-13
                                                                                                                                       Jan-14
                                                                                                                                       Jan-15
                                                                                                                                       Jan-16
                                                                                                                                       Jan-17
                                                                                                                                       Jan-18
                                                                                                                                       Jan-19

                                                                                                                                                                                                                      Jan-06
                                                                                                                                                                                                                      Jan-07
                                                                                                                                                                                                                      Jan-08
                                                                                                                                                                                                                      Jan-09
                                                                                                                                                                                                                      Jan-10
                                                                                                                                                                                                                      Jan-11
                                                                                                                                                                                                                      Jan-12
                                                                                                                                                                                                                      Jan-13
                                                                                                                                                                                                                      Jan-14
                                                                                                                                                                                                                      Jan-15
                                                                                                                                                                                                                      Jan-16
                                                                                                                                                                                                                      Jan-17
                                                                                                                                                                                                                      Jan-18
                                                                                                                                                                                                                      Jan-19

                                                                                                                                                                                                                                                                                                       Jan-06

                                                                                                                                                                                                                                                                                                                     Jan-08

                                                                                                                                                                                                                                                                                                                               Jan-10

                                                                                                                                                                                                                                                                                                                                                  Jan-12

                                                                                                                                                                                                                                                                                                                                                           Jan-14

                                                                                                                                                                                                                                                                                                                                                                        Jan-16

                                                                                                                                                                                                                                                                                                                                                                                   Jan-18
Fig 1 highlights Germany milk price and implication on milk production
and milk contents.
                                                                                                                                           Brazil milk suplly and demand                                              Brazil milk and feed prices                                               Brazil milk production in 2018
Dairy Sector Data & Long-term Outlook                                                                                                                   IFCN milk production (all milk)
                                                                                                                                                        Dairy consumption                                                           National milk price
                                                                                                                                                                                                                                                                                                in 1,000 tons

                                                                                                                                                        IFCN milk delivered to processor (all milk)                                 National feed price
The comprehensive IFCN product supports long-term strategic business                                                              50                                                                         160

                                                                                                                                  45
decisions providing comparable country level data. It contains the parts:                                                         40
                                                                                                                                                                                                             140

                                                                                                                                                                                                             120
time line data since 1996, regional data and IFCN Long-term Dairy Outlook                                                         35
                                                                                                                                                                                                             100
2040. Database reflects how the overall dairy situation looks like in the                                                          30

                                                                                                                                  25                                                                          80
country of analysis, helping in assessing the real market potentials. Stan-                                                       20
                                                                                                                                                                                                              60
                                                                                                                                                                                                                                                                                                                9,000
dardised and quality approved country data increase your efficiency in                                                              15
                                                                                                                                                                                                              40
                                                                                                                                                                                                                                                                                                                4,000
                                                                                                                                                                                                                                                                                                                1,000
                                                                                                                                  10
business analysis and business development by reducing the data mining                                                                                                                                        20
                                                                                                                                      5
time. Sample Fig 2 shows milk production until 2018 and Outlook 2040                                                                  0                                                                           0
                                                                                                                                                                                                                        2000
                                                                                                                                                                                                                        2002
                                                                                                                                                                                                                        2004
                                                                                                                                                                                                                        2006
                                                                                                                                                                                                                        2008
                                                                                                                                                                                                                        2010
                                                                                                                                                                                                                        2012
                                                                                                                                                                                                                        2014
                                                                                                                                                                                                                        2016
                                                                                                                                                                                                                        2018
                                                                                                                                           2000
                                                                                                                                           2004
                                                                                                                                           2008
                                                                                                                                           2012
                                                                                                                                           2016
                                                                                                                                           2020
                                                                                                                                           2024
                                                                                                                                           2028
                                                                                                                                           2032
                                                                                                                                           2036
                                                                                                                                           2040

                                                                                                                                                                                                                        1996
                                                                                                                                                                                                                        1998

with regional milk production for Brazil.
                                                                                                                                           Cost of milk production only                                               Milk Yield                                                                        Return to labor
Dairy Farm Comparison Data                                                                                                                 Quota costs (rent and opportunity costs) USD /100 kg milk (SCM)
                                                                                                                                           Opportunity costs (excl. quota) USD /100 kg milk (SCM)
                                                                                                                                                                                                                        Holstein Friesian cows
                                                                                                                                                                                                                        Other cows / buffaloes                                                            Return to labour

The farm sector data facilitates strategic decision making by presenting a                                                            70
                                                                                                                                           Cost from P&L account - non-milk returns USD /100 kg milk (SCM)
                                                                                                                                           Milk price USD /100 kg milk (SCM)
                                                                                                                                                                                                             14
                                                                                                                                                                                                                        HF cross and/or several breeds on farm
                                                                                                                                                                                                                        Milk yield (natural content)
                                                                                                                                                                                                                                                                                                 30
                                                                                                                                                                                                                                                                                                         Average wages on the farm
                                                                                                                                                                                                                                                                                                         Return to labour (including decoupled subsidies)

unique tool for benchmarking dairy farms world-wide. There are new key                                                                65
                                                                                                                                      60                                                                     12                                                                                  25

figures embedded in the product; cost components of the dairy enterpri-                                                                55
                                                                                                                                      50                                                                     10
                                                                                                                                                                                                                                                                                                 20

se and actual farm economics. These figures help to get an even better                                                                 45
                                                                                                                                      40                                                                      8
                                                                                                                                                                                                                                                                                                 15

insight in actual farm economics in the analysed countries. With the data,                                                            35
                                                                                                                                      30                                                                      6
                                                                                                                                                                                                                                                                                                 10

gain a deeper understanding of cost competitiveness and KPIs of dairy                                                                 25
                                                                                                                                      20                                                                      4
                                                                                                                                                                                                                                                                                                  5

                                                                                                                                                                                                                                                                                                  0
production such as efficiency, labour and land costs, capital, yield and pri-                                                           15
                                                                                                                                      10                                                                      2
                                                                                                                                                                                                                                                                                                  -5

ces. Fig 4 compares farms in Germany, USA and New Zealand on cost of                                                                  5
                                                                                                                                      0                                                                       0                                                                                  -10
                                                                                                                                                                                                  NZ-397
                                                                                                                                                                    DE-147N

                                                                                                                                                                                                                                                                              NZ-397

                                                                                                                                                                                                                                                                                                                                                                                 NZ-397
                                                                                                                                                                                                                                                                   US-500WI
                                                                                                                                                                                  US-500WI

                                                                                                                                                                                                                                               DE-147N

                                                                                                                                                                                                                                                                                                                                        DE-147N

                                                                                                                                                                                                                                                                                                                                                             US-500WI
                                                                                                                                                    DE-30S

                                                                                                                                                                                                                           DE-30S

                                                                                                                                                                                                                                                                                                                DE-30S

milk production and return to labour.

                © IFCN Dairy Report 2019                                                                                                                                                                                                                                                                                                                                                    2
3.45 Germany

                                             Łukasz Wyrzykowski

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   |   Dairy sector and chain profile                            © IFCN Dairy Report 2019
Dairy researchers representing 120 countries

  Institutional partners
                            International
                            Dairy
                            Federation

  Agribusiness partners
  Milk processing

  Feed and feed additives

  Milking and barn equipment                                                             Health and hygiene
                                                          WORLD

                                            T O TA L   D A I R Y   M A N A G E M E N T

  Farm machinery                                                                         Generics for animal & plants

  Milk testing, measure, transport                                                       Milk processing and packaging technologies

  Finance institutions                                                                   Agriculture technology companies

  Consulting and others                                                                  Dairy farming companies

ISSN 1610-434X
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