Glanbia chief predicts milk and dairy export growth from Asia and Africa

MILK and dairy export growth will come from emerging economies in Asia and Africa rather than from saturated dairy markets like Europe or India, according to Glanbia chief executive John Moloney.

“Real growth will come from countries and regions other than Europe,” John Moloney told attendees at the IFA-hosted Dairy 2020 conference in City West Hotel, Dublin. “By the end of this year, we will know what we will be doing, whether that is with others or on our own.

“We have a cheese operation in Nigeria. We will do 30,000 tons into that market from a standing start. We are there because we see it as a long-term growth market. There are 140 million people living in Africa, with a 3.5% to 4% annual growth in dairy consumption.

“India is the world’s biggest milk producer, but thankfully most of that product is consumed in India. Europe is a similarly saturated market. There is some opportunity in Russia. China has hugely increased its import of WMP. It seems that there is still some displacement of local product in China, notably among the more educated Chinese who are suspicious about the problems they are facing internally with their own milk production.”

Whole milk powder imports to China nearly doubled to an estimated 340,000 tonnes in 2010, making China the world’s largest market for infant formula.

Confidence in local milk has not returned to the Chinese market during the last two years, since a scandal over melamine -tainted milk powder hit mainland China and made nearly 300,000 children sick.