Powdered milk is not only a staple in households and industries but also a significant player in global markets. This article explores the economic impact of powdered milk, its role in international trade,
and the major players in the industry. From its production to its export, powdered milk is a key commodity with far-reaching implications for economies worldwide.
Economic Impact of Powdered Milk
The production and trade of powdered milk have substantial economic implications. As a nonperishable product with a long shelf life, powdered milk is favored for its ease of transport and storage. This makes it an attractive commodity for countries looking to export dairy products, as it reduces the need for refrigerated vehicles and storage facilities.
Powdered milk is a common item in UN food aid supplies and is widely used in developing countries due to its reduced transport and storage costs. Its economic impact is further amplified by its role in the manufacture of infant formula and other food products, contributing to the growth of the food industry.
International Trade and Export Markets
Powdered milk is a major export commodity for several countries, with New Zealand, China, Argentina, and Brazil being some of the largest producers. In the European Union, production of milk powder in the fiscal year 2019-2020 was estimated at around 3.0 million tonnes, with a significant portion exported in bulk packing or consumer packs.
Australia also has a notable milk powder export industry, exporting over 13,000 tonnes of skim and whole milk powder in the fiscal year 2020-2021, valued at approximately AUD $83 million. These figures highlight the importance of powdered milk in international trade and its role in supporting the economies of producing countries.
Major Players in the Powdered Milk Industry
The powdered milk industry is dominated by several key players, including Nestlé, Danone, Lactalis, Fonterra, FrieslandCampina, Dean Foods, Arla Foods, Dairy Farmers of America, Kraft Foods, Saputo, and Parmalat. These companies are responsible for producing and distributing a wide range of powdered milk products, catering to diverse markets and consumer needs.
Brands such as Nido from Nestlé, Incolac from Milcobel, Dutch Lady from FrieslandCampina, and Puck from Arla Foods are well-known in the market. These brands have established a strong presence in both domestic and international markets, contributing to the global reach of powdered milk.
In conclusion, powdered milk plays a crucial role in global markets, with significant economic and export implications. Its production and trade support the economies of producing countries, while major industry players continue to drive innovation and growth in the sector.
