Selected Results of the IFCN Dairy Network Milk Prices and Costs of Milk Production in 2003

Within the IFCN Dairy Network milk prices and costs of milk production have been analysed from 31 countries for the year 2003. A wide diversity of milk prices between the countries could be observed with > 35 US-$/100 kg milk in Switzerland, Norway and Canada and < 15 US-$ in Argentina and Pakistan. Costs of milk production differ significantly between the countries, and within the countries as well. The highest costs of milk production (50 - 60 US- $/100 kg milk) are found in Switzerland and on average sized farms in the EU, the lowest costs in Argentina (10 15 US-$). For the future, a "world market price for milk," which was around 15 - 20 US-$/100 kg milk in 2003, is expected to be higher and might end at around 28 US-$.Milk production, international competitiveness, International Farm Comparison Network, Livestock Production/Industries,

A Review of Milk Production in India with Particular Emphasis on Small-Scale Producers

The current document begins with a general overview of milk production in India. This is followed by a detailed study of dairy farming in Haryana State, particularly of the small-scale producers owning two to four milking animals who form the majority. The purpose is to assess their prospects for earning more from dairy farming, and to identify which areas of intervention in terms of management or policy are likely to be most favourable to them, and whether they are vulnerable to international competition. A further objective has been to evaluate the methodology used. The Review applies a method of economic analysis developed by the International Farm Comparison Network (IFCN) which is based on the concept of 'typical farms'. Four farm sizes were selected to represent typical farms in Haryana State, with two, four, 22 and 37 dairy animals respectively. Each farm is described in detail with assets, costs, profits and other economic information presented both graphically and in the text. A series of variables is introduced to model the effect of changes - in market prices or in production practices, for example - and these are discussed in the light of the reality facing small-scale dairy farmers. The Review concludes that the 'typical' farms with four and 22 dairy animals have the potential to cut their production costs and compete with imports. However, farmers with two dairy animals - the majority - are unlikely to be able to compete in future, even on the domestic market, without major changes. Nevertheless, the Review also recognises that in India, as in most other countries, farmers will keep their dairy animals as long as no alternative employment opportunities exist.Livestock Production/Industries,

A Review of Milk Production in Pakistan with Particular Emphasis on Small-scale Producers

The purpose of the study is to assess the economics of dairy farming in Pakistan and the prospects for improving the dairy income for small-scale producers, which currently form the backbone of the dairy industry. The document begins with a general overview of milk production in the country, followed by a detailed study of dairy farming in the province of Punjab, with a particular focus on the small-scale producers. Preliminary estimates of the margins in the formal and informal market for liquid milk are provided. The study applies a method of economic analysis developed by the International Farm Comparison Network (IFCN) which is based on the concept of typical farms. Four farm types were selected to represent 'typical farms' in the province of Punjab: one farm with one and three, and two farms with ten dairy animals respectively, one of the latter located near the city of Lahore. Each farm is described in detail with assets, production costs, profits and other economic information presented both graphically and in the text. The study concludes that a sound intervention strategy to strengthen the position of the small scale dairy farms would focus simultaneously on at least three fronts: (1) lowering farm production costs, (2) increasing productivity and (3) promoting a "higher" farmers' share in the consumer milk prices. A more competitive milk marketing system designed to cater for the needs of small-scale dairy farmers would send strong positive signals for small farmers to mobilise their own resources and develop their operations.Livestock Production/Industries,

Status and development in the dairy sector in the BRIC

Milk production is a very important element of the whole dairy chain. The BRIC countries are among the top 6 milk producing countries and produce nearly one third of the world's total milk volume. A large number of dairy animals and a relatively low milk output per animal show a great potential of the BRIC for a further growth of production. In the same time the BRIC countries comprise 42% of world's population. Expected population and prosperity growth will lead to a further growth in milk demand. The BRIC countries have a competitive level of milk production cost in international comparison. The success of the BRIC counties in the international milk market will depend on the contribution of all stakeholders in the dairy chain: farmers, processors, supporting industries and policy makers. --Dairy sector,BRIC,Brazil,Russia,India,China,IFCN

A Review of Milk Production in Bangladesh with Particular Emphasis on Small-Scale Producers

The purpose of the study is to assess the economics of dairy farming in Bangladesh and the prospects for improving the dairy income for small-scale producers, which currently form the backbone of the dairy industry. The document begins with a general overview of milk production in the country, followed by a detailed study of dairy farming in the in the northern district of Sirajganj. The study applies a method of farm-level economic analysis developed by the International Farm Comparison Network (IFCN) which is based on the concept of 'typical farms'. Three farm types were identified as 'typical' in the district and were subjected to detailed analysis: A two cow farm with 0.4 ha of land, a ten cow farm with 1.6 ha of land and a 25 cow farm with 1.8 ha of land. Each farm is described in detail with assets, production costs, profits and other economic information presented both graphically and in the text. Preliminary estimates of the margins in the dairy chain are provided. The study concludes that milk production from bovines in Bangladesh is not competitive internationally and that under a liberal trade regime for dairy products dairy farmers in Bangladesh are unlikely to fully benefit from the vast increase in milk demand predicted to occur over the next ten years unless productivity is significantly improved.Costs of production, Bangladesh, milk, policy, poverty reduction, small scale dairy, typical farms, Livestock Production/Industries,

Milchquotenausstieg 2008: Eine Analyse am Beispiel typischer Betriebe in den neuen Ländern

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A Global Project for Comparative Farm Analysis: The International Farm Comparison Network IFCN

Before IFCN was founded, existing farm-level data sets for international comparisons - if there were any - were not comparable. Differences from country to country regarding methodology applied, extent of data sets (physical and financial figures), and availability of up-to-date figures caused the incomparability. The IFCN is a world-wide association of agricultural scientists, advisors and farmers. Within the framework of this co-operation, farms and agricultural production systems are defined that are typical for their regions. Their economic situation is analysed, and the farms can be projected into the future. At present, the network, which is coordinated by the IFCN-centre in Braunschweig, Germany, operates for three branches: dairy (> 30 countries), beef and cow-calf (15 countries) and cash crop (13 countries). Funding of the network is organised via consortium fees from the partners as well as national and international supporters from agribusiness. The IFCN works on an annual schedule, organises annual conferences and annual reports for each product branch. With the existing data and information base, additional specific studies are carried out. Results comprise total cost, returns and profitability of dairy, beef and cash crop production, cost component analysis, benchmarking of single farms and farm groups, baseline projections, policy impact and farm strategy analysis as well as global sector and product information. The next steps foreseen are to extend the networks to more countries and more farms, to improve the supply reaction analysis on changing framework conditions, to intensify time series analysis of typical farms and prices, to strengthen sector and supply chain analysis, and to enter strategic partnerships with market and sector modelling projects.Farm comparisons, typical farms, international competitiveness, International Farm Comparison Network, Farm Management, Institutional and Behavioral Economics,

Benchmarking Cost of Milk Production in 46 Countries

The global dairy industry is facing challenges due to the extremely volatile milk price and a substantial increase of feed prices. The goal of this study, therefore, was to compare and benchmark the cost of milk production in 46 countries representing 87% of the world's total milk production, using a standard method developed by the International Farm Comparison Network (IFCN). Two typical farms were selected per country; one average-sized and one larger farm. The cost of milk production in 2010 ranged from 16.91US-$/100kg Energy Corrected Milk (ECM) in Armenia to 97.27 US-$/100kg ECM in Switzerland, with cost differences mainly driven by the diversity in farming and feeding systems. Based on costs, world regions were categorized into four levels: 40-50 US-$in the EU, Middle East and China; 30-40 US-$ in the USA, Brazil, CEEC and Oceania; &lt;30 US- in Africa, Asia, South America; >60 US- in Austria, Norway, Switzerland and Canada. The major drivers for this variation were ranked as; purchased feed cost (the highest) followed by labor, land and machinery costs. Regression analyzes showed that costs were highly correlated milk yield and milk price but not to herd size

Agriculture in the Face of Changing Markets, Institutions and Policies: Challenges and Strategies

Since the late 1980s, agriculture in Central and Eastern European Countries (CEECs) has been under considerable adjustment pressure due to changing political, economic and institutional environments. These changes have been linked to the transition process, as well as the ongoing integration into the European Union and the world market. Reduced subsidies, increased environmental and food quality demands, as well as structural changes in the supply, processing and food retailing sector call for major structural adjustments and the improvement of farmersâ managerial abilities. Though such changes always carry significant threats to farms, they also offer new opportunities for the farms' entrepreneurial engagement. Upcoming changes in the agricultural environment and their possible consequences for farm structures across Europe are thus still timely subjects. The objective of the IAMO Forum 2006 is to contribute to the success of agriculture in the CEECs, as well as their neighboring countries, in todayâs increasingly competitive environment. Concrete questions the conference focuses on are: What are the most suitable farm organizations, cooperative arrangements and contractual forms? How to improve efficiency and productivity? Where do market niches lie and what are the new product demands? This book contains 33 invited and selected contributions. These papers will be presented at the IAMO Forum 2006 in order to offer a platform for scientists, practitioners and policy-makers to discuss challenges and potential strategies at the farm, value chain, rural society and policy levels in order to cope with the upcoming challenges. IAMO Forum 2006, as well as this book, would not have been possible without the engagement of many people and institutions. We thank the authors of the submitted abstracts and papers, as well as the referees, for their evaluation of the abstracts from which the papers were selected. In particular, we would like to express our thanks to OLIVER JUNGKLAUS, GABRIELE MEWES, KLAUS REINSBERG and ANGELA SCHOLZ, who significantly contributed to the organization of the Forum. Furthermore, our thanks goes to SILKE SCHARF for her work on the layout and editing support of this book, and to JIM CURTISS, JAMIE BULLOCH, and DÃNALL Ã MEARÃIN for their English proof-reading. As experience from previous years documents, the course of the IAMO Forum continues to profit from the support and engagement of the IAMO administration, which we gratefully acknowledge. Last but not least, we are very grateful to the Robert Bosch Foundation, the Federal Ministry of Nutrition, Agriculture and Consumer Protection (BMELV), the German Research Foundation (DFG), the Haniel Foundation and the Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO) for their respective financial support.Agribusiness, Community/Rural/Urban Development, Farm Management, Industrial Organization, International Development, Labor and Human Capital, Land Economics/Use, Productivity Analysis,

Selected Results of the IFCN Dairy Network Milk Prices and Costs of Milk Production in 2003

Within the IFCN Dairy Network milk prices and costs of milk production have been analysed from 31 countries for the year 2003. A wide diversity of milk prices between the countries could be observed with > 35 US-$/100 kg milk in Switzerland, Norway and Canada and < 15 US-$ in Argentina and Pakistan. Costs of milk production differ significantly between the countries, and within the countries as well. The highest costs of milk production (50 - 60 US- $/100 kg milk) are found in Switzerland and on average sized farms in the EU, the lowest costs in Argentina (10 - 15 US-$). For the future, a "world market price for milk," which was around 15 - 20 US-$/100 kg milk in 2003, is expected to be higher and might end at around 28 US-$