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Milk output estimated at 81 million t

Our Bureau

MUMBAI, July 1

INDIA'S milk production during 2001-02 (April/March) marketing year could rise to an estimated 81 million tonnes, up from 79 mt and 77 mt in the previous two years respectively. Production growth in India is increasing through improved yields per animal rather than through growth in animal numbers, the Food and Agriculture Organisation (FAO) said.

On the price outlook for world milk and milk products, the agency said prices of milk powder could strengthen during the second half of the year following possibility of short supply on the world market. Dry weather in most of New Zealand, combined with a longer-standing dry period in Australia, may lead to 2001-02 output getting off to a slow start as pastures would be in poor condition.

This, combined with expected 10 per cent lower milk output in Argentina, could possibly lead to tightening supplies of some dairy products, according to the FAO. Cheese and casein prices are expected to remain stable during 2001, as supply and demand are less volatile. Also, international butter prices are expected to remain around the current levels due to the absence of strong demand, FAO said.

Global milk output in 2001 is expected to rise by 9 million tonnes to a forecast 585 mt. Major contributors to the increase will be India (2 mt), EC, Pakistan, Brazil and Ukraine (one million tonnes each).

Purchases of milk powder by most countries in South East Asia are expected to increase during 2001 as economic growth in the region sustains import demand. Additionally, for the oil producing countries in West Asia and North Africa, and Venezuela, revenu e from oil exports could lead to growth in import demand for a number of dairy products, FAO noted.