World News - Asia, Australasia, India

World In Brief
China has overtaken Russia
and Pakistan to become the
world's third largest dairy
producer. China's output of
dairy products rose by 15%
in 2006 CO 32.9m tonnes,
putting the country in third
place after India and the US.
The Dairy Association of
China attributed the growth
to the expansion in processing capacity. Both industrial
output and sales revenues of
major dairy processing companies had increased sevenfold between 1998 and 2006.
US grocer Kroger has launched
a fac-free milk designed to
reduce cholesterol under its
Active Lifestyle in-house brand.
The milk concains CoroWise
plant sterols, ingredients recognised as holding cholesterollowering properties.
Sales of Aria's Dana milk are
booming in Bangladesh with
a doubling of sales in nine
years. Last year, sales totalled
around 6,000 tons, making Dano the marker leader
within the branded powder
segment in the country.
In Fonterra's annual elections,
three of the cooperative's
highest profile board directors - Malcolm Bailey, Mark
Townsend and chairman
Henry van der Heyden - are
stepping down. The constitution requires three shareholder
elected directors to retire from
:he board by rotation each
year. New voting results will be
announced on September 26.

Indian dairy market to double by 2011

The sixth edition of Dairy India has been published
and estimates the country's dairy market will more
chan double by 2011. By then, the organised sector
will account for 30% of milk output and two-thirds
will come from the private sector
By 2011, Dairy India projects the value of the
industry co more chan double. Out of the anticipated
milk output of 120 metric tonnes (mr), the share of
liquid milk will rise to 81% or 97.5 mt and only the
remaining 19% would get converted into products.
The organised industry's share of rotal milk handling is set to go up to 30% (36 mt), while the small
players will see cheir share dip ro 22% {26 mt).

Dairy industry veteran

leaving Tatua
New Zealand-based Tacua CEO Mike Matthews will
seep down from the co-operative after 12 years in the
job and 44 in the dairy industry.
Matthews joined Tatua as general manager of
operations in 1994, becoming CEO a year later. He
has taken che company from $50 million (28.7m)
to S150 million (86.1 m) in turnover and created the
functional niche for Tatua. "The challenge to Tacua
now is how can it make sure that its commodity mix
is as competitive as it can be and at the same time
not lose sight of the importance of the value-added
component," Matthews says.
Matthews has a 44-year history in the dairy industry, joining the New Zealand Dairy Group in 1964.
He worked with the Dairy Research Instimre in the
1970s, and a: the Rangicaiki Plains Co-operative until
:he mid-1980s and for eight years in japan before
rejoining NZDC as general manager of research and
engineering services early in the 1990s.

Dairy Australia issues

positive recovery
outlook
The Australian dairy body Dairy Australia has issued
the upbeat ouclook for the country, following
research from the Australian Bureau of Agricultural
and Resource Economics (ABARE),
Dairy Australia says chac, despite a number of
local shocks to the industry, including a severe,
several years-long drought, the prospect of strong
global milk prices is giving dairy farmers confidence
CO invest in their businesses and forecasts Australian
dairy exports will increase by an estimated 8.5% in
2007 and 2008.
"The ability to recover quickly from the drought
once there is a widespread break in seasonal conditions will depend largely on the financial situation of
individual farmers, availability of irrigation water and
the ability to rebuild herds," says ]o Bills, manager of
strategic analysis at Dairy Australia.

Campina in new Thai venture

Swiss Nestle has opened

a milk powder factory in
China's Inner Mongolia. The
plant will help the region
cope with rising demand for
milk products.

Dutch dairy giant Campina and Thai Advanced

Food have linked up for the production of yogurt
and yogurt drinks in Thailand, according to the
company. The joint venture fits very well in the
Dutch giant's strategic ambition to expand ics
incernacional business in the area of healthy and
functional dairy products, according to Campina.

Prices of powdered milk

brands have increased by
seven per cent in Vietnam,
including domestic brands
Vinamiik, Abbott and Dutch
Lady. Milk companies note the
increases are due to the rising
price of imported ingredients.

The resulting company will have approximately

600 employees, with turnover of approximately
60 million.
Thai Advanced Food currently produces
Betagen brand cultured yogurt and yogurt drinks
for Thailand. In order to be able to target growth
in this area going forward, Campina has decided
to stop its own production and sales activities of

10 DII August 2007

At the same time, higher rural incomes will boost

the share of milk retained in rural areas co 48% or 58
mt. Another significant feature is that within the 30
per cent overall share of organised dairies, the top 20%
(24 mt) will be accounted for by the private sector
The cooperatives and governmenr dairies will
handle 10%, or 12 mt, of milk, which will be lower
rhan that of the organised private sector.
The present edition of Dairy India is the sixth and
was first launched in 1983. Founded and conceived
by the late PR. Gupta, it is now edited and published
by his son, Sharad Gupta. Please see www.indiadairy.
com for further details.

primarily private label milk in Thailand, thus finishing its joint-venture with Thai Dairy Industhes on
producing these products.

www.dairyinclustries.com