Dairy Development Newsletter

April 2001 Issue no. 5

Food and Agriculture Organization International Dairy Federationof the United Nations 41, Square Vergote,Animal Production Service B-1030, Brussels, BelgiumAnimal Production and Health Division Tel: 32 2 733 98 88 Viale delle Terme de Caracalla Fax: 32 2 733 04 1300100, Rome, Italy E-Mail: info@fil-idf.orgTel: +39 6 5705.4701Fax: +39 6 5705.5749Telex: 625852 FAO I E-mail: jeanclaude.lambert@fao.org

Introduction

This is the fifth in the series of Dairy Development Newsletters, sponsored by FAO and produced in collaboration with IDF. The growth in demand for the newsletter has been spectacular rising from 500 for issue No.1, to over 3,000 subscribers to the last issue. The newsletter is now also distributed in electronic form, in addition to hard copy, in order to reduce costs.

In this issue we have endeavored to give an up-to-date picture of the most interesting and cutting edge FAO and IDF activities in dairy development. This consists of a review of practical field activities and also a section on recent innovations and current issues in international dairy development including production, processing and marketing.

Thanks are also due to all those who contributed to this issue and in particular Dr. E. Mann who has compiled the IDF inputs. The Society of Dairy Technology of the UK and Republic of Ireland and the UK Dairy Association have kindly supported his inputs.

Comments, critical or otherwise, as well as potential contributions to future issues of the Newsletter, are most welcome.A. Bennett, Dairy Development Consultant, AGAP, FAO, Jean Claude Lambert, Senior Dairy officer, AGAP, FAO, Edward Hopkin, IDF, Director General.

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Dairy activities expanding.The livestock Products team based in the Animal Production Service (AGAP) of the Animal Production and Health Division mainly handles dairy activities in FAO. The team is headed by Jean Claude Lambert, Senior Dairy Officer, and consists of Brian T. Dugdill, Dairy and Meat Officer (Institutional Support and Training), Jurjen Draayer, Paulina Couenberg, Masatsugu Okita, Associate Professional Officers APO's) and Anthony Bennett, consultant. In addition the government of France will also shortly provide the services of an APO for the Global Lactoperoxidase Programme Secretariat, also based in AGAP.

The team is involved in dairy projects in varying stages of development in the following countries including: Bangladesh, Indonesia, Vietnam, Pakistan, The Philippines, The South Pacific Islands, Peru, Ecuador, Venezuela, Cuba, Guyana, Mexico, Madagascar, Uganda, Kenya, Tanzania, Mali, Burkina Faso, Niger, Mauritania, Tunisia, Hungary, Croatia, Slovak Republic, Romania, Bulgaria, Armenia, Azerbijan, and Estonia.

Electronic conference on small-scale milk collection and processing.The current focus of the team is on small-scale milk collection and processing in developing countries. The increase in human population has resulted and will result in an increased demand for livestock products. Small scale milk processing has the capacity to meet a substantial part of these product requirements. The main driving force to attract smallholders into this supply cycle is to provide increased returns. For this reason an Email conference on small-scale milk collection and processing was held by the service from 29 May to 28 July 2000.

The objectives of the conference were to: provide an overview of small scale milk

collection and processing in developing countries

gather ideas and share information about the subject of the conference

establish links and facilitate co-operation between key persons working in dairy production

The conference was organised as an E-mail conference to have global outreach and facilitate rapid and efficient feedback from the 571 participants from 97 countries. 69

Percent of the participants were from or working in developing countries. In total, 29 percent of the participants contributed by either sending in comments, papers or returned the questionnaire.

Three key topics chosen for the conference were: “From farm to collection point”, “Small-scale milk processing technologies” and “Milk producer's organisations”. Discussion papers, supporting poster papers and active comments and feedback and interaction combined with 'trigger statements' resulted in a lively and interesting conference.

The key findings of the conference were as follows:1. One of the main limitations to

small-scale milk collection and processing is lack of technical know how and practical hands-on exposure to the necessary skills and processes in milk processing.

2. There is a need to improve quality control of products. Consumers, in developed and developing countries alike, are entitled to expect that the food they consume to be safe and wholesome.

3. Many governments are withdrawing from formal milk collection and processing. This has created an opportunity for small-scale milk processors to enter a lucrative market with simple and low cost equipment/technologies.

4. Legal instruments covering the dairy sector in developing countries are frequently outdated and unsuited to current day needs.

5. Informal milk marketing continues to play an important part in the total milk marketed in developing countries. Organised small-scale milk collection and processing can contribute to the development of a formalised milk collection, processing and distribution system.

6. Individual farmers or farmers groups in developing countries are, in many cases currently receiving poor returns from their milk.

7. Feedback from participants

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indicated that this type of focused E-mail conference is required for additional subjects of relevance for small-scale processors.

8. There is a strong need for the development of low cost and adaptable milk processing technologies.

The main follow up recommendations for the conference were the following:

1. The lack of technical know how and practical hands-on exposure to the necessary skills and processes in milk processing can be provided by FAO in collaboration with other international and regional partners, who are in an ideal position to provide this type of information for sustainable and commercial development of small scale milk collection and processing. To address the greatest need and to maximise impact on the ground a comprehensive capacity building and training program is urgently needed in many countries. One solution may be the initiation of regional or agro-ecological zone based training centres, which would be operated initially on a pilot basis and process over a two-year period to a full cost recovery. Ideally then location would be related to the highest potential markets and milk production areas.

2. Governments and the private sector should take the lead in advising consumers on the potential hazards of consuming raw unpasteurised milk and milk products. Systems of milk payments should reflect milk quality and quality control measures in processing should be introduced.

3. Governments should promote small scale processing from policy to field level perhaps with the support of international organisations such as FAO.

4. A regulatory framework for small-scale milk collection and processing needs to be developed and adopted into each countries national legislation to facilitate and encourage the development of a dynamic and vibrant small-scale sector.

5. Farmers and farmers groups need to increase their current returns from milk production. Through effective organisation, small scale processing is a tool by which they can increase their direct market access and thus gain

higher return for their product(s).6. Feedback from participants

indicated that this type of focused E-mail conference is required for additional subjects of relevance for small-scale processors. There is a need for follow up E-mail and conventional workshops.

7. FAO activities at field level need to be substantially boosted in the area of small scale processing. Perhaps the cornerstone of this development would be training and transfer of low cost and adaptable technologies. FAO has already taken the initiative to compile some information in the form of a directory on the suppliers of equipment suited to small-scale milk collection and processing which should be available in late 2000. In addition a publication on Milk Producers Organisations is now being finalised.

As a result of the E mail conference FAO is planning to hold a series of regional conferences on the key issues which have been raised during the conference for public and private stakeholders who are actively involved in dairy development. The conferences will be organised by FAO in collaboration with one or more regional partners. A number of conference subscribers have already indicated their willingness to be actively involved in the conferences and we will shortly be finalising the locations and conference contents.Additional details and conference papers can be accessed at:http://www.fao.org/WAICENT/FAOINFO/AGRICULT/AGA/AGAP/LPS/dairy/econf/intro.htmThe proceedings are currently in press. For a hard copy please contact:Mr. J. Draayer, Animal Production and Health Division, FAO, 00100, Rome, Italy. Tel: 003906 570532736, Fax: 003906 57055749, E mail: jurjen.draayer@fao.org

Global Lactoperoxidase Programme The Global Lactoperoxidase Programme continues to gain momentum with the injection of additional vital support from the

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governments of France, Ireland, Hungary and the Czech Republic. The programme secretariat is based at FAO HQ in Rome.

The second annual meeting of the Global Lactoperoxidase group of experts met in Rome from 1-3 December 1999 to review progress and resolve some key issues which had been raised by some of the participating countries. Dr. Hiroshi Kudo, Chief of the Animal Production service was unanimously elected as vice-president of the Programme.The second annual meeting of the Global Lactoperoxidase group of experts was held at FAO headquarters, Rome, Italy from 1-3 December 1999. Experts from all five continents met to review the progress of the Global Lactoperoxidase Programme (GLP) to date and address key issues as proposed by the GLP secretariat. The first phase (preparatory) of the programme was financed by the Swedish Government under a trust fund arrangement. The secretariat is now prepared to move into the second phase, which is the active promotion of the Lactoperoxidase system (LP-s) of preservation as a real and effective method of raw milk preservation worldwide.

Recommendations from the first experts' meeting which was held in Uppsala, Sweden in July 1998 have been implemented. A field training manual on the practical use and application of the LP-s has been printed in the three languages, English, French and Spanish. Wall posters and substantial support material have been prepared and distributed and to date 50 countries have confirmed their interest in participating actively in the programme and have identified suitable national collaborating institutions and demonstration areas.

Using savings from the preparatory phase a number of pilot demonstrations have been conducted, notably in Guyana, Togo, Algeria and Senegal. Presentations were made to the experts on these demonstrations and substantial donor interest was generated which is shortly expected to result in continued funding for the programme. The secretariat has been very active in the preparation of project proposals for funding and has approached a number of donors and is also actively trying to mobilise internal FAO resources.

A number of technical issues regarding the quality, packaging and labelling of chemicals were successfully resolved by the group of experts, chaired by the president Prof. O. Claesson of the Swedish University of Agricultural Science.

Prof. Claesson also reported on additional training and development work being carried out in Sweden on LP-s. Lactoperoxidase is now included in the curriculum of the Swedish international Dairy Training Programme and also in the joint M.Sc. course on Tropical Livestock Systems given by the Swedish university of Agricultural Science together with Universities in Vietnam and Tanzania.Research is also ongoing on use of LP-s in conjunction with moderate cooling in Swedish milk collection systems.

Prof. JP. Ramet of ENSAIA, Nancy, France, presented a paper on current research and application of the enzyme Lactoperoxidase in France. Under test controlled conditions Lactoperoxidase has been shown to substantially reduce the number of psychrotrophic bacteria, coliforms, staphlococci and listeria in milk.

A small study was also carried out in Syria under the bilateral collaboration programme between the Agronomy faculty of the Aleppo in Syria and ENSAIA in Nancy. One of the key elements and concerns regarding the use of Lactoperoxidase is the possible effect, which it may have on milk, which is to be processed into products. The results of this study showed that the reactivation of Lactoperoxidase (which is a naturally occurring enzyme) only slows down the process of acidification of milk. It does not halt it completely. Milk treated for the reactivation of Lactoperoxidase may therefore be used for the production of acidified milk products e.g., fermented milk, creams, butter cheeses etc. Prof. Ramet also reported on an increasing trend to expand the uses of Lactoperoxidase including its use for preservation of various other food products and also its use in

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combination with other antimicrobials.

Dr. Y. Yamada, FAO, reported on some recent developments arising from the Third Session of the Codex Committee on Milk and Milk Products 1 which was held in May 1998. At this meeting the Delegation of India stated that despite the adoption of the Guidelines by the Codex Alimentarius Commission, the indiscriminate direct use of hydrogen peroxide at the levels between 300 and 800 ppm for preservation of raw milk still continues due to the lack of direction by Codex with regard to the rescinding of the use of the direct hydrogen peroxide method.The Delegations of Argentina, Brazil, Indonesia, Peru and Uruguay stated that refrigeration, either on the farm or applied during transportation to the processing plant, was the preferred method of maintaining milk hygiene.In relation to the preservation of raw milk, the Committee invited the Commission to confirm that the most preferred method was refrigeration. In cases where refrigeration was not possible, the Commission was invited to confirm its approval of the use of the enzymatic activators of the lactoperoxidase system in accordance with the Guidelines adopted in 1991 and based on the advice of JECFA. At the same time, the Committee recommended that the Commission make a clear statement to the effect that the use of hydrogen peroxide in a manner not consistent with the Guidelines for the Preservation of Raw Milk by Use of the Lactoperoxidase System was no longer acceptable.

Use of Hydrogen Peroxide for the Preservation of Raw Milk2

At the Twenty-Third Session of the Codex Alimentarius Commission, the Commission noted that the direct addition of hydrogen peroxide for preserving raw milk was included in List C of CAC/FAL 5-1979, which contains those substances the use thereof should be restricted to certain specified uses, and this had caused confusion in the international trade of milk. It further noted that the Commission had adopted at the 19th Session in 1991 the Guidelines for the Preservation of Raw Milk by Use of the Lactoperoxidase System3 which includes a substance that generates hydrogen peroxide at a much lower level than in the case of direct addition. At the time of the adoption at the 19th Session, the Commission had emphasized that the lactoperoxidase system should not be used for products intended for international trade and should only be used when refrigeration was not available4.The Commission agreed that the direct use of hydrogen peroxide was inconsistent with the above Guidelines and was no longer acceptable.The Commission confirmed: (a) that the most preferred method of the preservation of raw milk was refrigeration; (b) its approval of the use of the enzymatic activators of the lactoperoxidase system in accordance with the Guidelines for the Preservation of Raw Milk by Use of the Lactoperoxidase System and based on the advice of the Joint FAO/WHO Expert Committee on Food Additives, where refrigeration was not possible; and (c) that the lactoperoxidase system should not be used for products intended for international trade.

The experts encouraged the urgent move of the programme into the implementation phase. The secretariat was further encouraged to make maximum use of available resources and flexibility of approach in conducting national demonstrations

1 Successor to the Joint FAO/WHO Committee of Government Experts on the Code of Principles Concerning Milk and Milk Products, with a full Codex Committee status.

2 ALINORM 99/11, para. 96.3 CAC/GL 13-1991 (ALINORM 91/13, Appendix X).4 ALINORM 91/40, paras 232-234.

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in areas identified by participating national governments.

It was agreed that the third annual meeting would be held in Cuba in late 2000.

Some of the key outputs of the meetings included:1. Resolution of issues regarding design

and operation of the programme.2. Provision of a list of known

manufacturers/suppliers of Lactoperoxidase activation kits.

3. A protocol on packaging materials 4. List of participating countries and

institutes

For details contact: Anthony Bennett, Dairy Development Consultant, Animal Production and Health Division, Food and Agriculture Organisation of the United Nations, Rome, Italy. Tel: 003906 57053937, Fax: 003906 5705, E mail: Anthony.bennett@fao.org

An alternative, low-cost milk collecting and in-pouch pasteurising systemA low-cost milk collection-pasteurisation system currently being promoted by the Livestock Products team at FAO. Consumers want good quality pasteurised milk at the most competitive price. Milk that is to be transported over long distances requires cooling. For areas in developing countries where conventional cooling is not currently feasible, FAO is promoting the use of the Lactoperoxidase system of milk preservation (LP-s) to prolong the quality of milk by natural enzyme reactivation. Recent field trials in Bangladesh and Ghana confirmed that treated milk can be preserved for up to 10 hours after milking at an ambient temperature of 30C before cooling or processing.Conventional processing systems for pasteurising and packaging are also expensive for small-scale operations. FAO has recently field-tested a low-cost, innovative milk pasteurising unit in Kenya, called the MILKPRO. This is a complete fill, seal, pasteurise and cooling system. The initial investment of US$10 000 can be paid back within 12 months at a daily throughput of 750 litres. For the first time FAO is combining these two innovative technologies under its Village Milk System - the provisional name for the initiative. The immediate aims are to

increase producer returns by up to 50 percent, and to make increased volumes of attractively packaged, safe pasteurised milk available to consumers at competitive prices. The main advantages of the system are: able to handle very small

quantities of milk (as little as 50 litres a day) efficiently and safely

low energy and water consumption uses locally available packaging

materials reduced wastewater and more

environment friendly etc.The Village Milk System meets many of the key requirements for efficient, low-cost, low-risk milk collection and processing by smallholder marketing groups, and is an efficient tool for rural poverty alleviation. A preliminary financial analysis for four enterprises being established under a Grameen Bank/UNDP/FAO dairy project in Bangladesh indicates they will breakeven at a throughput of about 210 litres of pasteurised milk daily, one third of targeted sales for each enterprise. At this level, producers will get 70 percent of the ex-factory processed milk price. Further projects will start in Guyana and Madagascar during the next few months.

The initiative is being closely linked to ongoing work on Milk Producers Organisations (a publication is due early 2001). Other supporting activities include product safety, a directory of equipment suppliers, small-scale dairying for rural employment, a techno-economic assessment of alternative milk collection systems and business planning for small-scale dairy enterprises.

For details contact:B.T. Dugdill, Dairy and Meat Officer (Institutional Support Training), Animal Production and Health Division, Food and Agriculture Organisation of the United Nations, Rome, Italy. Tel: 003906 57053937, Fax: 003906 5705, Email: brian.dugdill@fao.org

Recent Developments in School Milk

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IntroductionSchool milk represents an excellent opportunity for the dairy industry to promote its products to the consumers of the future: children. The Commodities and Trade Division of the Food and Agriculture Organisation of the United Nations (FAO) has taken on the role to provide a forum for the national and international exchange of experiences and ideas, via e-mail lists, internet and a series of conferences.

School milk programmes are experiencing a resurgence internationally. During 1999 and 2000, policy changes promoting school milk programmes have been initiated in: Australia, China, Thailand, Indonesia, The Philippines; Saudi Arabia, The Sultanate of Oman, Israel, Colombia, Trinidad, British Columbia, The United States and The United Kingdom.

World School Milk Day was designated by members of FAO’s Dairy Outlook and School Milk e-mail discussion group as the last Wednesday in September. The first World School Milk Day will be held on 27 September 2000. A total of nine countries in Asia, Europe and North and South America will participate in the celebrations. In future years, more countries are expected to celebrate this day.

Classification of School Milk ProgrammesBroadly speaking, school milk programmes can be classified into three main categories:Long-standing programmes (most of Europe, North America, Japan);

More recently established programmes (South East Asia, China, some Latin American countries);In more recently established schemes, which are frequently in countries with a low level of milk consumption, school milk is seen by farmers and processors as an exciting opportunity to create a consumer base. Here, it is worth remembering that the school milk programme in Japan was instrumental in increasing that country’s milk consumption (in milk equivalent) from 5 litres at the start of the 1960’s to over 70 litres today. Imagine if the same result were achieved in China, a country which currently has a similarly low consumption base.

Regenerated programmes in countries where such programmes had ceased, often

when government support was withdrawn, or were of limited importance (several states in Australia and provinces in Canada, some countries in Eastern Europe).

Regenerated school milk programmes, especially in some parts of Australia and Canada, are meeting other beverages in schools head-on by using similar promotion techniques used by the competition: television advertising, promotions and provision of refrigerators. In this last category, organisational co-ordination is funded by the dairy industry (often farmers, sometimes processors). In some cases, the results have been astounding. For example, in New South Wales, milk increased from 4% of beverages drunk by children in schools, before the programme was restarted, to almost 25% of beverages, after the programme had been running for less than 5 years.

Operation of School Milk ProgrammesResults such as those above are impressive and should provide the dairy industry with food for thought. It is extremely hard to identify instances where such programmes have been successful without some form of central co-ordination; whether it be at the regional or national level. Such co-ordination is needed to provide the motor force to develop, guide and promote school milk programmes at all levels: children, teachers, parents, doctors, nutritionists, policy makers, and local and national government.

Local or national governments often have direct financial involvement in school milk programmes – an FAO survey of 36 countries, conducted in 1998, found that school milk was subsidised, or given free, in 70 percent of the countries which responded.

FAO’s Involvement in the Promotion of School MilkFAO has attempted to bridge the gap in the exchange of information on this subject area in by using its Dairy Outlook e-mail network and associated Internet site. Also, FAO

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contributed to the organisation of a series of seven international conferences on the theme of school milk over the period 1998 to 2000 (financed by sponsorship and registration fees). The format of the conferences concentrates on the interchange of ideas and experiences between persons working in the school milk sector - through the selection of an expert panel of speakers, encouraging poster displays by all participants and allowing ample time for participant interaction. For 2001, two conferences will be held: 1st

North American School Milk Conference, Toronto, Canada, 4-5 June; and 2nd

Asia/Pacific School Milk Conference, Shanghai, China, 19-21 November. For 2002, and beyond, further conferences in this series are expected. FAO has recently established the School Milk e-mail list, where, unlike the Dairy Outlook, which is wide-ranging, discussion is limited only to school milk. For details on joining either the Dairy Outlook or School Milk e-mail lists or obtaining additional information contact: Mr. Michael GriffinCommodity Specialist (Dairy)Commodities and Trade DivisionFood and Agriculture Organisation of the United NationsRome, ItalyTel: 003906 57053837Fax: 003906 57054495E mail: Michael.Griffin@fao.orgAbstract prepared from a paper by Mr. M. Griffin, FAO on "Recent Developments in School Milk", from IDF World Dairy Situation, September 2000

Report on International Workshop on Quality Management for Small to Medium – sized Dairy Processors, Mutare, Zimbabwe August 1999.This FAO/IDF Workshop, the provisional programme for which was printed in full on page 10 of Dairy Development Newsletter No. 4 (1999), took place in Mutare in August 1999 and was attended by 50 delegates. It was the first time that Zimbabwe had organized an IDF Workshop, and it proved highly successful, thanks to the hard work put in by Pat Borland and her colleagues.

Since the programme followed more or less the one outlined in the provisional programme, reference here will be confined to the opening and closing addresses.

Professor P. Vincent Hegarty of Michigan State University in his keynote address “Food Laws: Ignore Them at Your Peril”

very effectively set the tone for the Workshop, by stimulating everybody’s interest and participation. The issues he raised were emphasised by other speakers, giving some recurring themes which emerged from the Workshop. These were:

All players in the food chain have a responsibility for food safety;

Self-regulation is the name of the game;

The consumers’ needs are paramount;

Immediate access to information is essential to compete successfully in today’s markets, and African countries have very limited internet facilities;

Ongoing education of staff and consumers is essential;

Networking and continuous interaction within the industry is vital to the health of the industry and is a component of success for individual enterprises.

During the closing session Dr Tony Mutukumira of the Food and Family Nutrition Department of the University of Zimbabwe summed up very appropriately, once more highlighting the common themes of self regulation and accountability of all players in the food chain; Africa’s disadvantage in not having the required level of dairy education and access to information, particularly electronic forms and the benefits to be gained from interacting and linking with others in the same field. Indeed, the Workshop proved to be a watershed for Zimbabwe’s processors who up to that date had regarded each other as enemies but had now realised how much they could gain from working together to resolve their common constraints. It was agreed that the proceedings of the Workshop would prove to be a useful practical and training text for some years to come; that ongoing training sessions and workshops would be of great value to the processors, and that lasting links between individuals and organisations had been formed. The Workshop had been a great learning experience as well as fun for everyone.

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It is hoped that the Proceedings of the Workshop will be available from the IDF in due course.

The International Dairy Federation (IDF) and Emerging Dairy NationsIDF was restructured drastically from the year 1999 onwards. IDF continues to rely on voluntary experts who are the lifeblood of IDF’s work. These experts, who have a wide range of expertise in the field of dairying, now carry out their work in Standing Committees and Task Forces, their efforts being co-ordinated and supervised by the Programme Co-ordination Committee which has a Chairman and eight members. Dr Amrita Patel of India represents the interests of emerging countries. IDF’s approach to emerging dairy nations is based on Dr Patel’s ideas and is outlined later.

At the present time, the following Standing Committees and Task Forces have been set up:

Standing CommitteesAnalytical methods for additives & contaminants Animal health Dairy policies and economics Dairy technology Environment Farm management Food additivesFood labelling & terminology Main components of milk Marketing (including nutrimarketing)Microbiological hygiene Minor components and characterization of physical properties Microbiological methods of analysisNutrition and HealthQuality assurance , statistics of analytical data, samplingResidues and chemical contaminantsStandards for cheeseStandards for dairy products other than cheese

Task ForcesAlternatives to traditional heat treatments Imitations of milk and milk productsMycobacterium paratuberculosis (recently disbanded, having completed its work).

This Newsletter has been produced by an Action Team consisting of J.C. Lambert and E.J. Mann. This Action Team operates within the scope of IDF’s Standing Committee on Dairy technology.

The Strategic Plan approved by the IDF Council at its May, 1999 meeting includes a new emphasis on the emerging nations in terms of specific representation on the Programme Co-ordination Committee and calls, specifically, for referral of items of interest to the emerging nations to the Standing Committees (SC).

In December 1999 the IDF Programme Coordination Committee decided that Agendas of Standing Committees and Task Forces (TF) would include an item that relates specifically to the needs of emerging dairy nations. The emerging country member was also asked to draft an approach paper, which the IDF Director General circulated to each of the Standing Committees and Task Forces.

Since the April 2000 meeting, the initiative to engage emerging dairy nation participation in discussion of issues – issues that in many instances are important to the future of dairying in the emerging nations – has seen a beginning. A few Standing Committees and Task Forces have proposed and/or adopted work items they had identified as responsive to the interests of emerging dairying nations.

However IDF has recognized that a more fundamental approach is required and such an approach is now under consideration. It is essential to involve representatives of emerging dairy nations. It is not appropriate to rely only on ideas from experts from developed countries. A significant effort is required to establish the common ground and produce work of real value to dairy people in emerging dairy nations.

It is important to find a way both to validate existing work items that have been adopted and to ensure that the list is expanded to reflect a fuller inventory of issues of importance of emerging nations. Finding the means and the ways to engage emerging dairying nations in this effort is the new task and, at the same time,

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encouraging their dairy industries to become full, responsible partners in the IDF, constitute the next steps in this approach.

It is particularly important that we invest the time and effort to identify institutions and individuals who legitimately represent the interests of the dairy industry of emerging dairy nations. In this the FAO as well as other multinational and bilateral assistance agencies involved with dairying in developing countries can help. As the National Dairy Development Board of India (NDDB) receives numerous inquiries and visitors from the emerging nations, the Indian National Committee of IDF will pursue these. We hope, too, that a seminar on smallholder dairying that NDDB will be jointly sponsoring with the International Livestock Research Institute (ILRI) in India early 2001, will help identify individuals, institutions and issues relevant to dairying in some Asian and African countries.

Recognising the limits both in time and human resource, IDF has undertaken to focus on identifying and prioritizing which are the emerging dairying nations. The criteria need to be evolved and applied. Possible criteria for defining emerging countries could be:

An approach to emerging dairying nation problems1. Guidelines for determining an emerging

dairying nation:Criteria which could be used to arrive at a possible list of emerging dairying nations:a. Countries that provide substantial

quantities of milk (including goat or sheep milk) either in absolute or per capita terms.

b. Where dairying plays a significant role in the agricultural economy,

c. Effective institutions exist to promote and support the dairy industry,

d. Policy and programmes indicate a national interest to advance dairying, and

e. The country accepts being classified as an emerging dairying nation.

It is proposed that the IDF consider as an emerging dairying nation one that is, or has demonstrated the potential to be, a significant milk producer, both in absolute

terms as well as in respect to per capita production of milk. This would mean that policy, institutional and programme support either exist or are forthcoming. It is these countries that have a stake in the development of dairying worldwide and which should be represented in the IDF and other international fora whose decisions affect dairying.Some IDF member countries would qualify as well as some that are not (yet) members:

IDF has decided that, with its limited resources, it should dialogue with IDF member countries and also extend itself to the other emerging dairying nations. This could be treated as a prelude to their becoming members/associate members of the IDF in the future if they see a benefit.

2. Establishing contact with institutions/individuals in the countries identified:Standing Committees could contact the IDF member countries through their respective National Committees and, with regard to other countries, Standing Committees could dialogue with the following to identify suitable persons in these countries:

Institutions/individuals based on advice from FAO, bilateral donors

Ministries concerned with dairying, in these countries.

Research institutes, Government or autonomous

institutions dealing with programmes and policies concerned with dairying, and

Private enterprises having a significant share of the nation’s milk trade.

The forthcoming ILRI-NDDB workshop on Small-holder Dairying at NDDB, Anand could also throw up institutions and individuals who could be contacted to initiate a dialogue in countries in Asia and Africa.

If IDF and those active in IDF have informal contacts in any of the above countries, communication with them should be encouraged. IDF Secretariat should be kept informed.

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3. Identifying issues and enhancing participation of emerging countries:

Identifying Issues:Issues of interest to emerging dairying nations should be considered by IDF Standing Committees and Task Forces. The following areas have been proposed for consideration and are being circulated to those concerned:a. Putting in place mechanisms

through which risk assessment data, pertaining to maximum levels for contaminants and adulterants in milk, as fixed by Codex Committees, are collected from emerging countries;

b. Expertise in the formulation of inexpensive and simple methods for determining bacteriological counts, levels of adulterants and contaminants along with systems for milk quality data collection and monitoring;

c. Seminars, workshops and demonstrations, to assist emerging countries in their efforts to reduce the levels of heavy metals, aflatoxins, pesticides and veterinary drugs in milk and milk products.

d. Approaches to aligning existing smallholder animal husbandry practices with the requirements of maintaining individual animal records, registration of animals, etc.

e. Sharing of technology and expertise leading to reduced use of water during processing of milk and manufacture of milk products as well as more efficient wastewater treatment.

f. Assistance in training in testing procedures for confirmation of disease in animals and presence of pathogens in milk.

g. Suitable methods of enrichment of agricultural by–products like straws, oil cakes, brans, etc to be fed to dairy animals. This would help provide a planned feeding regimen to the animal resulting in good health and resistance to disease.

h. Assistance in training milk producers in hygienic milk production.

i. Development of education/extension material on hygienic milk production in smallholder farms where people have low m

j. Levels of literacy.k. Economical milk chilling

systems for capacities below 400 litres at farm level.

l. Inexpensive rapid methods for testing microorganisms in milk at the dairy farm.

m. Inexpensive rapid methods for detection of somatic cells at village level.

n. Inexpensive and simple method for estimation of dioxins.

o. Suggesting a mechanism for collecting risk assessment data, pertaining to maximum levels of contaminants in milk, in emerging countries and assistance in putting such mechanisms in place.

It is to be noted, that on going through the Programme of Work identified by the Standing Committees to date, these subjects do not seem to have been considered. IDF has been asked to accept the principle that the issues taken up are ones which have been put forward by emerging countries or at least issues which emerging countries on consultation have supported. Two further areas were identified as having potential interest for emerging dairy nations. Preliminary discussion in IDF draws attention to the fact that they are already being handled, respectively by FAO and the World Animal Health Organization (OIE). They are:

– Establishing mechanisms through which emerging countries could be trained in HACCP systems and their applications. (IDF should however take into account the work of FAO in this field and avoid duplication of effort)

– Approaches to developing Disease Free Zones, especially with regard to OIE List-A diseases.

Enhancing participation-Possible ways:IDF Secretariat could contact National Committees of emerging countries and encourage them to identify experts in their countries for nomination to Standing Committees

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who would be willing to communicate through email if they are unable to attend meetings. IDF would take the responsibility of preparing and continuously updating the list of experts in these countries.

Recognising the cost of travel to participate in meetings which are held only in Europe and U.S.A., the use of e-mail can now greatly facilitate dialogue and enhance participation from emerging countries.

Seminars, workshops and demonstrations as well as Standing Committee meetings could be held in emerging countries who are willing to host such meetings. This would also ensure wider participation of these countries.

It is also essential that the dialogue being proposed with emerging countries is not used as a point of entry for commercial interests.

4. Proposed arrangement for the future with regard to work items relating to emerging dairying nations:i) New guidelines are intended to ensure that the handling of items relating to emerging dairy nations are referred to the NCs that qualify as emerging countries for comment and approval. IDF authorities are to proceed on the basis of more than 50% of National Committees giving an opinion. The Standing Committees can form an Action Team only for the work items approved by the National Committees. Such Action Teams should have representation from at least 2-3 Emerging Countries in addition of developed nation representation.

ii) Items of work relating to particular needs of emerging dairy nations could be suggested by SCs or Action Teams. These however must be first referred to National Committees of those IDF members defined as emerging countries, to determine whether they are actually relevant, before proceeding any further.

iii) It would be appropriate for the Emerging Countries IDF’s Programme Coordination Committee member to be kept informed by SCs & ATs of all developments and actions proposed concerning Emerging Countries.

5. Need for raising fundsMultilateral and bilateral sources of funds

would need to be raised to meet the cost of work or research undertaken by members of IDF Standing Committees or experts who are assigned problems from emerging dairying nations. At present, there are no funds available in IDF to cover these expenses.

6. Existing workIDF’s existing work of issues of interest to emerging dairy nations will have to be reviewed in the light of the above approach. In particular representatives of emerging dairy nations will be asked to give their views on the potential value of these items.

World Dairy Situation and Beyond – IDF World Dairy Summit 2000Four interesting reports, covering the current status of countries and regions in the Developing world, were presented at the World Dairy Summit in Dresden. Only very brief highlights of these presentations are possible in this Newsletter, but readers can obtain full texts from the IDF in Brussels. Reports were given on India, China, the ASEAN region and Latin America and all the reports highlight the actual and potential growth trends for milk and dairy products.

Deepak Tikku, Managing Director of the National Dairy Development Board (NDDB) in India, reported that India was now the world’s leading milk producing nation, national milk production having grow from 48.4 mmt in 1988/89 to an estimated 74.7 mmt in 1998/99, and increasing at a rate of over 4% annually.

The Anand pattern of village milk cooperatives, developed by the NDDB now embraces 11 million households and about 65 million people. Cooperative members (20% of whom are women) benefit from a modern milk processing and marketing structure as well as from education and training in feeding, breeding and management. Over 12 million l. of liquid milk are marketed by the co-operatives sector in more than 750 of

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India’s major cities and towns, and in 1997/98 milk payments to members amounted to nearly US $ 1.02 billion.

Mr. Tikku ended by saying: “In concluding I would like to ask our colleagues in the IDF whether our commitment to the emerging nations is simply disguising a fundamental interest in exports or whether it is a genuine desire to help others build dairy industries that benefit their nations as dairying has benefited all of ours. If we all combine our commercial interests with that of building a better world, we can make a difference through dairying”.

A remarkable picture of actual and potential growth in China’s dairy industry emerged from the statistics presented by Zengh Da Zheng, Deputy manager of the Shanghai Bright Dairy Food Co. Ltd. Liquid milk output in China in 1999 is given as around 800.000 tons of which 80 percent is pasteurized milk, 5 percent UHT milk and 15 percent yoghurt. Of the 690.000 tons of dairy products produced in 1999, 80 percent were milk powder. There are 800 dairy companies in China. Dramatic changes are taking place in the sales and distribution system for milk, due to urbanization and the accompanying changes in retailing via supermarkets, increased home delivery, improvements in dairy processing and packaging technology and the changes in consumption patterns.

Recombined milk is becoming increasingly popular, especially as a means of overcoming milk shortages in the low season. A School Milk Programme has been launched by the Central Government in July 2000, with emphasis on safety and quality; the scheme is being launched successively in five big cities, some provincial capital cities in 2001 and eventually in small cities by 2003/4. Initially, 190ml Tetra Brik Aseptic packages will be used as the main packaging format.

China is presented as the country with the fastest growth in the next ten years. Total milk production has increased over 8-fold between 1978 and 1999 and the annual average growth rate in liquid milk production between 1996 and 1999 is given as 15.5 percent.Since 1998, the demand for liquid milk, and consumption in large and medium-sized cities, has increased significantly and

hundreds of UHT and pasteurized milk lines have been installed during the last three years to meet this demand. The Ministry of Agriculture anticipates that annual per capita consumption will increase by 50 percent from the present level to 10 kg by 2005 and other estimates predict a consumption level of 15 kg by 2010.

In his paper on the dairy situation in the ASEAN region, Assara Suwanabol, President of the National Milk Drinking Campaign Board in Bangkok, Thailand, reported that, even with the recent economic recession, the growth in dairy product demand has still been significant in the ASEAN region, covering ten nations in Southeast Asia namely Brunei, Darussalam, Cambodia, India, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The region is now one of the most important dairy markets replacing Russia, Central America and North Africa, with about 5.5 million tons of milk equivalent or about 10-15 percent of the world dairy trade. Despite the disparity in market sizes and stages of development and maturity, all these countries have some common features.

With a total population of more than 500 million, the ASEAN region is already a large dairy market. More importantly, all countries in this region experienced rapid economic growth in the 90s, some with two digit GNP growth for many years, and as a result, their people had more purchasing power. Since ASEANs per capita milk consumption is still low, there is a great opportunity for rapidly growing dairy demand.

The Thai government’s budget for its free school milk this year reached 6,000 million Bhat (US$140 million) while the Philippine Parliament was expected to pass a school milk bill with an initial fund of 300 million pesos. Elsewhere the steady increase in demand occurred across all product groups, particularly drinking yoghurt, cheese and milk powder. All in all, the rate of growth of milk consumption in

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the region has been more than ten percent over the past ten years as compared to the world average of about 1 percent, making ASEAN one of the most important emerging dairy markets.

Major key drivers of the remarkable growth were rapidly rising income, greater acceptance of dairy products and school milk programmes in many countries. The economic recession during the past four years however, had slowed down demand increase to a level that greatly affected the growth of dairy imports.

All ASEAN countries depend on dairy imports, which amounted to more than 5.5 million tons liquid milk equivalent annually. Although milk production in some countries, i.e. Thailand, Vietnam and the Philippines, etc., has steadily been increased to substitute the imports, low productivity hindered the growth.

Unfair international trade practices have prompted policy-makers in the region to reconsider their WTO commitments. Dairy farmers also voiced their grievance and asked the government to protect local industry.

Finally, in his survey of the dairy sector in Latin America Mr. Ricardo James of the Centro de la Industria Lechera in Buenos Aires, Argentina gave comprehensive statistics on milk production and consumption in the region. He covered the Mercosur countries of Argentina, Brazil, Paraguay, Uraguay as well as the closely associated Chile; the Andean Pact countries of Bolivia, Peru, Ecuador, Colombia and Venezuela, the countries of Central America, including Honduras, El Salvador, Costa Rica, Nicaragua, Guatemala and Panama, as well as Mexico and the Caribbean countries.

Overall, milk production in Latin America appears to have increased by 37 percent, from 41.5 to 57 billion l., between 1990 and 1998. Mercosur and Chile accounted for 70 percent of Latin America’s production increase during this period, the Andean countries for 15 percent and Mexico for 14 percent, production in the Caribbean region dropping by 2.6 percent largely due to the adverse situation in Cuba.

Latin America’s average per capita

production of milk in 1998 was 116.2l. ranging from 38.3 l. in the Caribbean to 157.3 l. in the Mercosur countries; per capita consumption of milk ranged from 53.6 l. in the Caribbean to 156.7 l. in the Mercosur countries. Net imports of dairy products into Latin America were nearly 4.4 billion l., Mexico accounting for almost 50 percent, in the form of milk powder.

Recombined Milk and Milk ProductsAnother area of considerable interest to many emerging dairying countries, in which the IDF has been very active over many years, has been in the organization of international symposia on this subject. The 3rd

International Symposium on Recombined Milk and Milk Products, organized jointly by IDF, Food Science Australia and Aust Dairy Ltd, was held in Penang, Malaysia in May 1999, and the recently published proceedings (available from IDF in Brussels) represent an outstanding compilation of our current knowledge of this important subject. The 200 delegates from 22 countries were presented with papers by 30 speakers in seven main technical sessions covering: International perspectives; Products and processing; Ingredients for recombination; Nutritional ingredients; Alternative formulations; and Food safety.

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In his opening keynote address Wayne Sanderson, one of the world's leading experts in this field, reminded delegates that the U.S. Armed Forces were usually credited with pioneering the development of recombined milk production during the Second World War, followed quickly in the 1950s by the Japan School Lunch Programme. Commercial recombining operations were initiated by several leading multinational companies, the manufacture of recombined milk products expanding rapidly through South-East Asia and into the Middle East, Central and South America, and then into Africa

The introduction of UHT processing and the development of the "cold chain" have had a dramatic effect on the development of a wide range of recombined milk products which, today, cover practically all dairy products. He concluded by outlining his assessment of the future expectations for recombined milk products, which included the development of new products, some based on the combination of dairy ingredients with non-dairy products.

A preliminary announcement has been made about the planned 4th

International Symposium on Recombined Milk and Milk Products, due to take place in Mexico in 2004 (April/May).

IDF Meets in Argentina – May 2001For the first time in IDF’s history an IDF Legislation Week, comprising meetings in the area of Codex food standards and microbiological hygiene will take place in Argentina in May 2001. IDF wants to expand its membership to emerging countries and wants in particular attract emerging dairy nations in Latin America to join.

IDF and the World Health Organization (WHO)Closer co–operation between IDF and the WHO is possible and desirable for both parties. This was the conclusion of meetings between senior officials in March 2001.

We are interested in establishing long–term working relationships with private sector organizations such as IDF, said Dr. G. Clugston, WHO Director, Nutrition for Health and Development.

An IDF Action team on WHO activities of interest to IDF is proposed. Its objectives would be:- to scrutinize present WHO priorities and work programme in the area of Nutrition for health and development,- to consider the roster of experts currently working for WHO on issues of interest to IDF,

- to develop a WHO–IDF work plan and identify IDF experts willing to participate.

IDF should also appoint a liaison expert with WHO.

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