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Dairy & Ruminant

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Animal Health

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Livestock Production
Monday, March 24, 2008 6:02:38 PM
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Developing dairy institutions

Anthony Bennett



A dairy institution is an established dairy organisation or body, different from milk producer groups, co-operatives to dairy boards and industry associations.


In order to have effective dairy development, several challenges and issues have to be identified on national and regional levels, and a complete value chain approach is also required.


Challenges identified at national level include,

    •  purchasing power
    •  legal frameworks 
    •  production - costs, feeding, breeding, organization 
    •  processing and marketing

Challenges identified at regional level include,

    • trade standards
    • subsidies and tariffs


Asia is the highest demand growth area for milk and dairy products worldwide, and improved international milk price has turned interest and investment to Asia.


However, resources are growing tight and many Asian countries have joined international or regional trade groups, which may or may not be of benefit to the dairy sector. One of the effects is the growth of industrial joint ventures in the region to facilitate smooth market access for international players.



Roles of dairy institutes

The roles of dairy institutes are to promote dairy development, facilitating organisation and to promote milk consumption.


Traditional local dairy institutions have tended to be focused on milk producers groups, associations or cooperatives at various levels. A recent development is the growth of dairy industry groups (mainly private sector), perhaps in direct collaboration with the government. This focuses on facilitation and consultation for shared interest in dairy development.


India is the world's largest milk producer and countries like The Philippines, Pakistan, Mongolia and even China are slowly on their way to make the best out of its dairy sector.


To have a successful dairy institute, there are key points and resources that have to be noted. Key points to remember include the need to learn about market orientation on a global, regional and national scale, and to learn the examples of failures in dairy institutes.


Resources required would be investment funding and seed funding, both of which are important.


The below three factors can also be used as a guide for improving smallholder market access,

    • To be market based; 
    • economically viable;
    • and environmentally sustainable.
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Article made possible through the contribution of Food and Agriculture Organisation of the United Nations.

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