Food and Agriculture Organization International Dairy Federation

Dairy Development Newsletter April 2001 Issue no. 5

Food and Agriculture Organization International Dairy Federation of the United Nations 41, Square Vergote, Animal Production Service B-1030, Brussels, Belgium Animal Production and Health Division Tel: 32 2 733 98 88 Viale delle Terme de Caracalla Fax: 32 2 733 04 13 00100, Rome, Italy E-Mail: [email protected] Tel: +39 6 5705.4701 Fax: +39 6 5705.5749 Telex: 625852 FAO I E-mail: [email protected]

 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.

1  Dairy activities expanding. conference. The livestock Products team based in the Animal Production Service (AGAP) of the Animal Production The key findings of the conference were as and Health Division mainly handles dairy activities in follows: FAO. The team is headed by Jean Claude Lambert, 1. One of the main limitations to small-scale Senior Dairy Officer, and consists of Brian T. Dugdill, milk collection and processing is lack of Dairy and Meat Officer (Institutional Support and technical know how and practical hands-on Training), Jurjen Draayer, Paulina Couenberg, exposure to the necessary skills and Masatsugu Okita, Associate Professional Officers processes in milk processing. APO's) and Anthony Bennett, consultant. In addition 2. There is a need to improve quality control of the government of France will also shortly provide the products. Consumers, in developed and services of an APO for the Global Lactoperoxidase developing countries alike, are entitled to Programme Secretariat, also based in AGAP. expect that the food they consume to be safe and wholesome. The team is involved in dairy projects in varying stages 3. Many governments are withdrawing from of development in the following countries including: formal milk collection and processing. This Bangladesh, Indonesia, Vietnam, Pakistan, The has created an opportunity for small-scale Philippines, The South Pacific Islands, Peru, Ecuador, milk processors to enter a lucrative market Venezuela, Cuba, Guyana, Mexico, Madagascar, with simple and low cost Uganda, Kenya, Tanzania, Mali, Burkina Faso, Niger, equipment/technologies. Mauritania, Tunisia, Hungary, Croatia, Slovak 4. Legal instruments covering the dairy sector Republic, Romania, Bulgaria, Armenia, Azerbijan, and in developing countries are frequently Estonia. outdated and unsuited to current day needs. 5. Informal milk marketing continues to play  Electronic conference on small-scale milk collection an important part in the total milk marketed and processing. in developing countries. Organised small- The current focus of the team is on small-scale milk scale milk collection and processing can collection and processing in developing countries. The contribute to the development of a increase in human population has resulted and will formalised milk collection, processing and result in an increased demand for livestock products. distribution system. Small scale milk processing has the capacity to meet a 6. Individual farmers or farmers groups in substantial part of these product requirements. The developing countries are, in many cases main driving force to attract smallholders into this currently receiving poor returns from their supply cycle is to provide increased returns. For this milk. reason an Email conference on small-scale milk 7. Feedback from participants indicated that collection and processing was held by the service from this type of focused E-mail conference is 29 May to 28 July 2000. required for additional subjects of relevance for small-scale processors. The objectives of the conference were to: 8. There is a strong need for the development  provide an overview of small scale milk collection of low cost and adaptable milk processing and processing in developing countries technologies.  gather ideas and share information about the subject of the conference The main follow up recommendations for the  establish links and facilitate co-operation between conference were the following: key persons working in dairy production 1. The lack of technical know how and The conference was organised as an E-mail conference practical hands-on exposure to the necessary to have global outreach and facilitate rapid and efficient skills and processes in milk processing can feedback from the 571 participants from 97 countries. be provided by FAO in collaboration with 69 Percent of the participants were from or working in other international and regional partners, developing countries. In total, 29 percent of the who are in an ideal position to provide this participants contributed by either sending in comments, type of information for sustainable and papers or returned the questionnaire. commercial development of small scale milk collection and processing. To address the Three key topics chosen for the conference were: “From greatest need and to maximise impact on the farm to collection point”, “Small-scale milk processing ground a comprehensive capacity building technologies” and “Milk producer's organisations”. and training program is urgently needed in Discussion papers, supporting poster papers and active many countries. One solution may be the comments and feedback and interaction combined with initiation of regional or agro-ecological zone 'trigger statements' resulted in a lively and interesting based training centres, which would be

2 operated initially on a pilot basis and process over a 003906 57055749, E mail: [email protected] two-year period to a full cost recovery. Ideally then location would be related to the highest potential  Global Lactoperoxidase Programme markets and milk production areas. The Global Lactoperoxidase Programme 2. Governments and the private sector should take the continues to gain momentum with the injection lead in advising consumers on the potential hazards of additional vital support from the governments of consuming raw unpasteurised milk and milk of France, Ireland, Hungary and the Czech products. Systems of milk payments should reflect Republic. The programme secretariat is based at milk quality and quality control measures in FAO HQ in Rome. processing should be introduced. 3. Governments should promote small scale The second annual meeting of the Global processing from policy to field level perhaps with Lactoperoxidase group of experts met in Rome the support of international organisations such as from 1-3 December 1999 to review progress and FAO. resolve some key issues which had been raised 4. A regulatory framework for small-scale milk by some of the participating countries. Dr. collection and processing needs to be developed Hiroshi Kudo, Chief of the Animal Production and adopted into each countries national legislation service was unanimously elected as vice- to facilitate and encourage the development of a president of the Programme. dynamic and vibrant small-scale sector. The second annual meeting of the Global 5. Farmers and farmers groups need to increase their Lactoperoxidase group of experts was held at current returns from milk production. Through FAO headquarters, Rome, Italy from 1-3 effective organisation, small scale processing is a December 1999. Experts from all five continents tool by which they can increase their direct market met to review the progress of the Global access and thus gain higher return for their Lactoperoxidase Programme (GLP) to date and product(s). address key issues as proposed by the GLP 6. Feedback from participants indicated that this type secretariat. The first phase (preparatory) of the of focused E-mail conference is required for programme was financed by the Swedish additional subjects of relevance for small-scale Government under a trust fund arrangement. processors. There is a need for follow up E-mail The secretariat is now prepared to move into the and conventional workshops. second phase, which is the active promotion of 7. FAO activities at field level need to be substantially the Lactoperoxidase system (LP-s) of boosted in the area of small scale processing. preservation as a real and effective method of Perhaps the cornerstone of this development would raw milk preservation worldwide. be training and transfer of low cost and adaptable technologies. FAO has already taken the initiative Recommendations from the first experts' meeting to compile some information in the form of a which was held in Uppsala, Sweden in July 1998 directory on the suppliers of equipment suited to have been implemented. A field training manual small-scale milk collection and processing which on the practical use and application of the LP-s should be available in late 2000. In addition a has been printed in the three languages, English, publication on Milk Producers Organisations is French and Spanish. Wall posters and now being finalised. substantial support material have been prepared and distributed and to date 50 countries have As a result of the E mail conference FAO is planning to confirmed their interest in participating actively hold a series of regional conferences on the key issues in the programme and have identified suitable which have been raised during the conference for public national collaborating institutions and and private stakeholders who are actively involved in demonstration areas. dairy development. The conferences will be organised by FAO in collaboration with one or more regional Using savings from the preparatory phase a partners. A number of conference subscribers have number of pilot demonstrations have been already indicated their willingness to be actively conducted, notably in Guyana, Togo, Algeria and involved in the conferences and we will shortly be Senegal. Presentations were made to the experts finalising the locations and conference contents. on these demonstrations and substantial donor Additional details and conference papers can be accessed interest was generated which is shortly expected at: to result in continued funding for the programme. http://www.fao.org/WAICENT/FAOINFO/AGRICULT The secretariat has been very active in the /AGA/AGAP/LPS/dairy/econf/intro.htm preparation of project proposals for funding and The proceedings are currently in press. For a hard copy has approached a number of donors and is also please contact: actively trying to mobilise internal FAO Mr. J. Draayer, Animal Production and Health Division, resources. FAO, 00100, Rome, Italy. Tel: 003906 570532736, Fax:

3 A number of technical issues regarding the quality, The Delegations of Argentina, Brazil, Indonesia, packaging and labelling of chemicals were successfully Peru and Uruguay stated that refrigeration, either resolved by the group of experts, chaired by the on the farm or applied during transportation to president Prof. O. Claesson of the Swedish University the processing plant, was the preferred method of of Agricultural Science. maintaining milk hygiene. In relation to the preservation of raw milk, the Prof. Claesson also reported on additional training and Committee invited the Commission to confirm development work being carried out in Sweden on LP-s. that the most preferred method was refrigeration. Lactoperoxidase is now included in the curriculum of In cases where refrigeration was not possible, the the Swedish international Dairy Training Programme Commission was invited to confirm its approval and also in the joint M.Sc. course on Tropical Livestock of the use of the enzymatic activators of the Systems given by the Swedish university of Agricultural lactoperoxidase system in accordance with the Science together with Universities in Vietnam and Guidelines adopted in 1991 and based on the Tanzania. advice of JECFA. At the same time, the Research is also ongoing on use of LP-s in conjunction Committee recommended that the Commission with moderate cooling in Swedish milk collection make a clear statement to the effect that the use systems. of hydrogen peroxide in a manner not consistent with the Guidelines for the Preservation of Raw Prof. JP. Ramet of ENSAIA, Nancy, France, presented a Milk by Use of the Lactoperoxidase System was paper on current research and application of the enzyme no longer acceptable. Lactoperoxidase in France. Under test controlled conditions Lactoperoxidase has been shown to Use of Hydrogen Peroxide for the Preservation substantially reduce the number of psychrotrophic of Raw Milk2 bacteria, coliforms, staphlococci and listeria in milk. At the Twenty-Third Session of the Codex Alimentarius Commission, the A small study was also carried out in Syria under the Commission noted that the direct bilateral collaboration programme between the addition of hydrogen peroxide for Agronomy faculty of the Aleppo in Syria and ENSAIA preserving raw milk was included in in Nancy. One of the key elements and concerns List C of CAC/FAL 5-1979, which regarding the use of Lactoperoxidase is the possible contains those substances the use effect, which it may have on milk, which is to be thereof should be restricted to certain processed into products. The results of this study specified uses, and this had caused showed that the reactivation of Lactoperoxidase (which confusion in the international trade of is a naturally occurring enzyme) only slows down the milk. It further noted that the process of acidification of milk. It does not halt it Commission had adopted at the 19th completely. Milk treated for the reactivation of Session in 1991 the Guidelines for the Lactoperoxidase may therefore be used for the Preservation of Raw Milk by Use of the production of acidified milk products e.g., fermented Lactoperoxidase System3 which milk, creams, butter cheeses etc. Prof. Ramet also includes a substance that generates reported on an increasing trend to expand the uses of hydrogen peroxide at a much lower Lactoperoxidase including its use for preservation of level than in the case of direct addition. various other food products and also its use in At the time of the adoption at the 19th combination with other antimicrobials. Session, the Commission had emphasized that the lactoperoxidase Dr. Y. Yamada, FAO, reported on some recent system should not be used for products developments arising from the Third Session of the intended for international trade and Codex Committee on Milk and Milk Products 1 which should only be used when refrigeration was held in May 1998. At this meeting the Delegation was not available4. of India stated that despite the adoption of the The Commission agreed that the direct use of Guidelines by the Codex Alimentarius Commission, the hydrogen peroxide was inconsistent with the indiscriminate direct use of hydrogen peroxide at the above Guidelines and was no longer acceptable. levels between 300 and 800 ppm for preservation of raw The Commission confirmed: (a) that the most milk still continues due to the lack of direction by preferred method of the preservation of raw milk Codex with regard to the rescinding of the use of the was refrigeration; (b) its approval of the use of direct hydrogen peroxide method. the enzymatic activators of the lactoperoxidase system in accordance with the Guidelines for the

2 1 ALINORM 99/11, para. 96. Successor to the Joint FAO/WHO Committee 3 of Government Experts on the Code of Principles CAC/GL 13-1991 (ALINORM 91/13, Appendix Concerning Milk and Milk Products, with a full Codex X). Committee status. 4 ALINORM 91/40, paras 232-234.

4 Preservation of Raw Milk by Use of the packaged, safe pasteurised milk available to Lactoperoxidase System and based on the advice of the consumers at competitive prices. The main Joint FAO/WHO Expert Committee on Food Additives, advantages of the system are: where refrigeration was not possible; and (c) that the  able to handle very small quantities of milk lactoperoxidase system should not be used for products (as little as 50 litres a day) efficiently and intended for international trade. safely  low energy and water consumption The experts encouraged the urgent move of the  uses locally available packaging materials programme into the implementation phase. The  reduced wastewater and more environment secretariat was further encouraged to make maximum friendly etc. use of available resources and flexibility of approach in The Village Milk System meets many of the key conducting national demonstrations in areas identified requirements for efficient, low-cost, low-risk by participating national governments. milk collection and processing by smallholder marketing groups, and is an efficient tool for It was agreed that the third annual meeting would be rural poverty alleviation. held in Cuba in late 2000. A preliminary financial analysis for four enterprises being established under a Grameen Some of the key outputs of the meetings included: Bank/UNDP/FAO dairy project in Bangladesh 1. Resolution of issues regarding design and indicates they will breakeven at a throughput of operation of the programme. about 210 litres of pasteurised milk daily, one 2. Provision of a list of known third of targeted sales for each enterprise. At this manufacturers/suppliers of Lactoperoxidase level, producers will get 70 percent of the ex- activation kits. factory processed milk price. Further projects 3. A protocol on packaging materials will start in Guyana and Madagascar during the 4. List of participating countries and institutes next few months.

For details contact: The initiative is being closely linked to ongoing Anthony Bennett, Dairy Development Consultant, Animal work on Milk Producers Organisations (a Production and Health Division, Food and Agriculture publication is due early 2001). Other supporting Organisation of the United Nations, Rome, Italy. Tel: 003906 57053937, Fax: 003906 5705, E mail: activities include product safety, a directory of [email protected] equipment suppliers, small-scale dairying for rural employment, a techno-economic  An alternative, low-cost milk collecting and in- assessment of alternative milk collection systems pouch pasteurising system and business planning for small-scale dairy A low-cost milk collection-pasteurisation system enterprises. currently being promoted by the Livestock Products team at FAO. Consumers want good quality pasteurised For details contact: milk at the most competitive price. Milk that is to be B.T. Dugdill, Dairy and Meat Officer (Institutional transported over long distances requires cooling. For Support Training), Animal Production and Health Division, Food and Agriculture Organisation of the areas in developing countries where conventional United Nations, Rome, Italy. Tel: 003906 57053937, cooling is not currently feasible, FAO is promoting the Fax: 003906 5705, Email: [email protected] 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 Recent Developments in School Milk Ghana confirmed that treated milk can be preserved for Introduction up to 10 hours after milking at an ambient temperature School milk represents an excellent opportunity of 30C before cooling or processing. for the dairy industry to promote its products to Conventional processing systems for pasteurising and the consumers of the future: children. The packaging are also expensive for small-scale operations. Commodities and Trade Division of the Food FAO has recently field-tested a low-cost, innovative and Agriculture Organisation of the United milk pasteurising unit in Kenya, called the MILKPRO. Nations (FAO) has taken on the role to provide a This is a complete fill, seal, pasteurise and cooling forum for the national and international exchange system. The initial investment of US$10 000 can be of experiences and ideas, via e-mail lists, internet paid back within 12 months at a daily throughput of 750 and a series of conferences. litres. For the first time FAO is combining these two School milk programmes are experiencing a innovative technologies under its Village Milk System - resurgence internationally. During 1999 and the provisional name for the initiative. The immediate 2000, policy changes promoting school milk aims are to increase producer returns by up to 50 programmes have been initiated in: percent, and to make increased volumes of attractively Australia, China, Thailand, Indonesia, The

5 Philippines; Saudi Arabia, The Sultanate of Oman, the motor force to develop, guide and promote Israel, Colombia, Trinidad, British Columbia, The school milk programmes at all levels: children, United States and The United Kingdom. teachers, parents, doctors, nutritionists, policy makers, and local and national government. World School Milk Day was designated by members of FAO’s Dairy Outlook and School Milk e-mail Local or national governments often have direct discussion group as the last Wednesday in September. financial involvement in school milk The first World School Milk Day will be held on 27 programmes – an FAO survey of 36 countries, September 2000. A total of nine countries in Asia, conducted in 1998, found that school milk was Europe and North and South America will participate in subsidised, or given free, in 70 percent of the the celebrations. In future years, more countries are countries which responded. expected to celebrate this day. FAO’s Involvement in the Promotion of School Classification of School Milk Programmes Milk Broadly speaking, school milk programmes can be FAO has attempted to bridge the gap in the classified into three main categories: exchange of information on this subject area in Long-standing programmes (most of Europe, North by using its Dairy Outlook e-mail network and America, Japan); associated Internet site. Also, FAO contributed to the organisation of a series of seven More recently established programmes (South East international conferences on the theme of school Asia, China, some Latin American countries); milk over the period 1998 to 2000 (financed by In more recently established schemes, which are sponsorship and registration fees). The format of frequently in countries with a low level of milk the conferences concentrates on the interchange consumption, school milk is seen by farmers and of ideas and experiences between persons processors as an exciting opportunity to create a working in the school milk sector - through the consumer base. Here, it is worth remembering that the selection of an expert panel of speakers, school milk programme in Japan was instrumental in encouraging poster displays by all participants increasing that country’s milk consumption (in milk and allowing ample time for participant equivalent) from 5 litres at the start of the 1960’s to interaction. For 2001, two conferences will be over 70 litres today. Imagine if the same result were held: 1st North American School Milk achieved in China, a country which currently has a Conference, Toronto, Canada, 4-5 June; and 2nd similarly low consumption base. Asia/Pacific School Milk Conference, Shanghai, China, 19-21 November. For 2002, and beyond, Regenerated programmes in countries where such further conferences in this series are expected. programmes had ceased, often when government FAO has recently established the School Milk e- support was withdrawn, or were of limited importance mail list, where, unlike the Dairy Outlook, which (several states in Australia and provinces in Canada, is wide-ranging, discussion is limited only to some countries in Eastern Europe). school milk. For details on joining either the Dairy Outlook or School Milk e-mail lists or Regenerated school milk programmes, especially in obtaining additional information contact: some parts of Australia and Canada, are meeting other Mr. Michael Griffin beverages in schools head-on by using similar Commodity Specialist (Dairy) promotion techniques used by the competition: Commodities and Trade Division television advertising, promotions and provision of Food and Agriculture Organisation of the United Nations refrigerators. In this last category, organisational co- Rome, Italy ordination is funded by the dairy industry (often Tel: 003906 57053837 farmers, sometimes processors). In some cases, the Fax: 003906 57054495 results have been astounding. For example, in New E mail: [email protected] South Wales, milk increased from 4% of beverages Abstract prepared from a paper by Mr. M. Griffin, FAO drunk by children in schools, before the programme was on "Recent Developments in School Milk", from IDF World Dairy Situation, September 2000 restarted, to almost 25% of beverages, after the programme had been running for less than 5 years.  Report on International Workshop on Quality Management for Small to Medium – Operation of School Milk Programmes sized Dairy Processors, Mutare, Zimbabwe Results such as those above are impressive and should August 1999. provide the dairy industry with food for thought. It is This FAO/IDF Workshop, the provisional extremely hard to identify instances where such programme for which was printed in full on page programmes have been successful without some form of 10 of Dairy Development Newsletter No. 4 central co-ordination; whether it be at the regional or (1999), took place in Mutare in August 1999 and national level. Such co-ordination is needed to provide was attended by 50 delegates. It was the first

6 time that Zimbabwe had organized an IDF Workshop, who are the lifeblood of IDF’s work. These and it proved highly successful, thanks to the hard work experts, who have a wide range of expertise in put in by Pat Borland and her colleagues. the field of dairying, now carry out their work in Standing Committees and Task Forces, their Since the programme followed more or less the one efforts being co-ordinated and supervised by the outlined in the provisional programme, reference here Programme Co-ordination Committee which has will be confined to the opening and closing addresses. a Chairman and eight members. Dr Amrita Patel of India represents the interests of emerging Professor P. Vincent Hegarty of Michigan State countries. IDF’s approach to emerging dairy University in his keynote address “Food Laws: Ignore nations is based on Dr Patel’s ideas and is Them at Your Peril” very effectively set the tone for the outlined later. Workshop, by stimulating everybody’s interest and participation. The issues he raised were emphasised by At the present time, the following Standing other speakers, giving some recurring themes which Committees and Task Forces have been set up: emerged from the Workshop. These were: Standing Committees  All players in the food chain have a responsibility Analytical methods for additives & contaminants for food safety; Animal health  Self-regulation is the name of the game; Dairy policies and economics  The consumers’ needs are paramount; Dairy technology  Immediate access to information is essential to Environment compete successfully in today’s markets, and Farm management African countries have very limited internet Food additives facilities; Food labelling & terminology  Ongoing education of staff and consumers is Main components of milk essential; Marketing (including nutrimarketing)  Networking and continuous interaction within the Microbiological hygiene industry is vital to the health of the industry and is a Minor components and characterization of physical component of success for individual enterprises. properties Microbiological methods of analysis During the closing session Dr Tony Mutukumira of the Nutrition and Health Food and Family Nutrition Department of the Quality assurance , statistics of analytical data, sampling University of Zimbabwe summed up very appropriately, Residues and chemical contaminants once more highlighting the common themes of self Standards for cheese regulation and accountability of all players in the food Standards for dairy products other than cheese chain; Africa’s disadvantage in not having the required level of dairy education and access to information, Task Forces particularly electronic forms and the benefits to be Alternatives to traditional heat treatments gained from interacting and linking with others in the Imitations of milk and milk products same field. Indeed, the Workshop proved to be a Mycobacterium paratuberculosis (recently disbanded, having watershed for Zimbabwe’s processors who up to that completed its work). date had regarded each other as enemies but had now realised how much they could gain from working This Newsletter has been produced by an Action together to resolve their common constraints. It was Team consisting of J.C. Lambert and E.J. Mann. agreed that the proceedings of the Workshop would This Action Team operates within the scope of prove to be a useful practical and training text for some IDF’s Standing Committee on Dairy technology. years to come; that ongoing training sessions and workshops would be of great value to the processors, The Strategic Plan approved by the IDF Council and that lasting links between individuals and at its May, 1999 meeting includes a new organisations had been formed. The Workshop had emphasis on the emerging nations in terms of been a great learning experience as well as fun for specific representation on the Programme Co- everyone. ordination Committee and calls, specifically, for referral of items of interest to the emerging It is hoped that the Proceedings of the Workshop will be nations to the Standing Committees (SC). available from the IDF in due course. In December 1999 the IDF Programme  The International Dairy Federation (IDF) and Coordination Committee decided that Agendas Emerging Dairy Nations of Standing Committees and Task Forces (TF) IDF was restructured drastically from the year 1999 would include an item that relates specifically to onwards. IDF continues to rely on voluntary experts the needs of emerging dairy nations. The

7 emerging country member was also asked to draft an Criteria which could be used to arrive at a approach paper, which the IDF Director General possible list of emerging dairying nations: circulated to each of the Standing Committees and Task a. Countries that provide substantial Forces. quantities of milk (including goat or sheep milk) either in absolute or per Since the April 2000 meeting, the initiative to engage capita terms. emerging dairy nation participation in discussion of b. Where dairying plays a significant role issues – issues that in many instances are important to in the agricultural economy, the future of dairying in the emerging nations – has seen c. Effective institutions exist to promote a beginning. A few Standing Committees and Task and support the dairy industry, Forces have proposed and/or adopted work items they d. Policy and programmes indicate a had identified as responsive to the interests of emerging national interest to advance dairying, dairying nations. and e. The country accepts being classified as However IDF has recognized that a more fundamental an emerging dairying nation. approach is required and such an approach is now under consideration. It is essential to involve representatives It is proposed that the IDF consider as an of emerging dairy nations. It is not appropriate to rely emerging dairying nation one that is, or has only on ideas from experts from developed countries. A demonstrated the potential to be, a significant significant effort is required to establish the common milk producer, both in absolute terms as well as ground and produce work of real value to dairy people in respect to per capita production of milk. This in emerging dairy nations. would mean that policy, institutional and programme support either exist or are It is important to find a way both to validate existing forthcoming. It is these countries that have a work items that have been adopted and to ensure that stake in the development of dairying worldwide the list is expanded to reflect a fuller inventory of issues and which should be represented in the IDF and of importance of emerging nations. Finding the means other international fora whose decisions affect and the ways to engage emerging dairying nations in dairying. this effort is the new task and, at the same time, Some IDF member countries would qualify as encouraging their dairy industries to become full, well as some that are not (yet) members: responsible partners in the IDF, constitute the next steps in this approach. IDF has decided that, with its limited resources, it should dialogue with IDF member countries It is particularly important that we invest the time and and also extend itself to the other emerging effort to identify institutions and individuals who dairying nations. This could be treated as a legitimately represent the interests of the dairy industry prelude to their becoming members/associate of emerging dairy nations. In this the FAO as well as members of the IDF in the future if they see a other multinational and bilateral assistance agencies benefit. involved with dairying in developing countries can help. As the National Dairy Development Board of India 2. Establishing contact with (NDDB) receives numerous inquiries and visitors from institutions/individuals in the countries the emerging nations, the Indian National Committee of identified: IDF will pursue these. We hope, too, that a seminar on Standing Committees could contact the IDF smallholder dairying that NDDB will be jointly member countries through their respective sponsoring with the International Livestock Research National Committees and, with regard to Institute (ILRI) in India early 2001, will help identify other countries, Standing Committees could individuals, institutions and issues relevant to dairying dialogue with the following to identify in some Asian and African countries. suitable persons in these countries: . Institutions/individuals based on advice Recognising the limits both in time and human resource, from FAO, bilateral donors IDF has undertaken to focus on identifying and . Ministries concerned with dairying, in these prioritizing which are the emerging dairying nations. countries. The criteria need to be evolved and applied. Possible . Research institutes, criteria for defining emerging countries could be: . Government or autonomous institutions dealing with programmes and policies  An approach to emerging dairying nation concerned with dairying, and problems . Private enterprises having a significant share 1. Guidelines for determining an emerging dairying of the nation’s milk trade. nation: The forthcoming ILRI-NDDB workshop on

8 Small-holder Dairying at NDDB, Anand could also m. Inexpensive rapid methods for detection throw up institutions and individuals who could be of somatic cells at village level. contacted to initiate a dialogue in countries in Asia and n. Inexpensive and simple method for Africa. estimation of dioxins. o. Suggesting a mechanism for collecting If IDF and those active in IDF have informal contacts in risk assessment data, pertaining to any of the above countries, communication with them maximum levels of contaminants in should be encouraged. IDF Secretariat should be kept milk, in emerging countries and informed. assistance in putting such mechanisms in place. 3. Identifying issues and enhancing participation of emerging countries: It is to be noted, that on going through the Identifying Issues: Programme of Work identified by the Standing Issues of interest to emerging dairying nations should be Committees to date, these subjects do not seem considered by IDF Standing Committees and Task to have been considered. IDF has been asked to Forces. The following areas have been proposed for accept the principle that the issues taken up are consideration and are being circulated to those ones which have been put forward by emerging concerned: countries or at least issues which emerging a. Putting in place mechanisms through which countries on consultation have supported. risk assessment data, pertaining to maximum Two further areas were identified as having levels for contaminants and adulterants in milk, potential interest for emerging dairy nations. as fixed by Codex Committees, are collected Preliminary discussion in IDF draws attention to from emerging countries; the fact that they are already being handled, b. Expertise in the formulation of inexpensive and respectively by FAO and the World Animal simple methods for determining bacteriological Health Organization (OIE). They are: counts, levels of adulterants and contaminants along with systems for milk quality data – Establishing mechanisms through which collection and monitoring; emerging countries could be trained in HACCP c. Seminars, workshops and demonstrations, to systems and their applications. (IDF should assist emerging countries in their efforts to however take into account the work of FAO in reduce the levels of heavy metals, aflatoxins, this field and avoid duplication of effort) pesticides and veterinary drugs in milk and milk products. – Approaches to developing Disease Free Zones, d. Approaches to aligning existing smallholder especially with regard to OIE List-A diseases. animal husbandry practices with the requirements of maintaining individual animal Enhancing participation-Possible ways: records, registration of animals, etc. IDF Secretariat could contact National e. Sharing of technology and expertise leading to Committees of emerging countries and reduced use of water during processing of milk encourage them to identify experts in their and manufacture of milk products as well as countries for nomination to Standing Committees more efficient wastewater treatment. who would be willing to communicate through f. Assistance in training in testing procedures for email if they are unable to attend meetings. IDF confirmation of disease in animals and would take the responsibility of preparing and presence of pathogens in milk. continuously updating the list of experts in these g. Suitable methods of enrichment of agricultural countries. by–products like straws, oil cakes, brans, etc to be fed to dairy animals. This would help Recognising the cost of travel to participate in provide a planned feeding regimen to the meetings which are held only in Europe and animal resulting in good health and resistance U.S.A., the use of e-mail can now greatly to disease. facilitate dialogue and enhance participation h. Assistance in training milk producers in from emerging countries. hygienic milk production. i. Development of education/extension material Seminars, workshops and demonstrations as well on hygienic milk production in smallholder as Standing Committee meetings could be held farms where people have low m in emerging countries who are willing to host j. Levels of literacy. such meetings. This would also ensure wider k. Economical milk chilling systems for participation of these countries. capacities below 400 litres at farm level. l. Inexpensive rapid methods for testing It is also essential that the dialogue being microorganisms in milk at the dairy farm. proposed with emerging countries is not used

9 as a point of entry for commercial interests. and increasing at a rate of over 4% annually.

4. Proposed arrangement for the future with regard to The Anand pattern of village milk cooperatives, work items relating to emerging dairying nations: developed by the NDDB now embraces 11 i) New guidelines are intended to ensure that the million households and about 65 million people. handling of items relating to emerging dairy nations are Cooperative members (20% of whom are referred to the NCs that qualify as emerging countries women) benefit from a modern milk processing for comment and approval. IDF authorities are to and marketing structure as well as from proceed on the basis of more than 50% of National education and training in feeding, breeding and Committees giving an opinion. The Standing management. Over 12 million l. of liquid milk Committees can form an Action Team only for the work are marketed by the co-operatives sector in more items approved by the National Committees. Such than 750 of India’s major cities and towns, and in Action Teams should have representation from at least 1997/98 milk payments to members amounted to 2-3 Emerging Countries in addition of developed nation nearly US $ 1.02 billion. representation. Mr. Tikku ended by saying: “In concluding I ii) Items of work relating to particular needs of would like to ask our colleagues in the IDF emerging dairy nations could be suggested by SCs or whether our commitment to the emerging nations Action Teams. These however must be first referred to is simply disguising a fundamental interest in National Committees of those IDF members defined as exports or whether it is a genuine desire to help emerging countries, to determine whether they are others build dairy industries that benefit their actually relevant, before proceeding any further. nations as dairying has benefited all of ours. If we all combine our commercial interests with iii) It would be appropriate for the Emerging Countries that of building a better world, we can make a IDF’s Programme Coordination Committee member to difference through dairying”. be kept informed by SCs & ATs of all developments and actions proposed concerning Emerging Countries. A remarkable picture of actual and potential growth in China’s dairy industry emerged from 5. Need for raising funds the statistics presented by Zengh Da Zheng, Multilateral and bilateral sources of funds would need to Deputy manager of the Shanghai Bright Dairy be raised to meet the cost of work or research Food Co. Ltd. Liquid milk output in China in undertaken by members of IDF Standing Committees or 1999 is given as around 800.000 tons of which experts who are assigned problems from emerging 80 percent is pasteurized milk, 5 percent UHT dairying nations. At present, there are no funds available milk and 15 percent yoghurt. Of the 690.000 tons in IDF to cover these expenses. of dairy products produced in 1999, 80 percent were milk powder. There are 800 dairy 6. Existing work companies in China. Dramatic changes are IDF’s existing work of issues of interest to emerging taking place in the sales and distribution system dairy nations will have to be reviewed in the light of the for milk, due to urbanization and the above approach. In particular representatives of accompanying changes in retailing via emerging dairy nations will be asked to give their views supermarkets, increased home delivery, on the potential value of these items. improvements in dairy processing and packaging technology and the changes in consumption  World Dairy Situation and Beyond – IDF World patterns. Dairy Summit 2000 Four interesting reports, covering the current status of Recombined milk is becoming increasingly countries and regions in the Developing world, were popular, especially as a means of overcoming presented at the World Dairy Summit in Dresden. Only milk shortages in the low season. A School Milk very brief highlights of these presentations are possible Programme has been launched by the Central in this Newsletter, but readers can obtain full texts from Government in July 2000, with emphasis on the IDF in Brussels. Reports were given on India, safety and quality; the scheme is being launched China, the ASEAN region and Latin America and all the successively in five big cities, some provincial reports highlight the actual and potential growth trends capital cities in 2001 and eventually in small for milk and dairy products. cities by 2003/4. Initially, 190ml Tetra Brik Aseptic packages will be used as the main Deepak Tikku, Managing Director of the National Dairy packaging format. Development Board (NDDB) in India, reported that India was now the world’s leading milk producing China is presented as the country with the fastest nation, national milk production having grow from 48.4 growth in the next ten years. Total milk mmt in 1988/89 to an estimated 74.7 mmt in 1998/99, production has increased over 8-fold between

10 1978 and 1999 and the annual average growth rate in amounted to more than 5.5 million tons liquid liquid milk production between 1996 and 1999 is given milk equivalent annually. Although milk as 15.5 percent. production in some countries, i.e. Thailand, Since 1998, the demand for liquid milk, and Vietnam and the Philippines, etc., has steadily consumption in large and medium-sized cities, has been increased to substitute the imports, low increased significantly and hundreds of UHT and productivity hindered the growth. pasteurized milk lines have been installed during the last three years to meet this demand. The Ministry of Unfair international trade practices have Agriculture anticipates that annual per capita prompted policy-makers in the region to consumption will increase by 50 percent from the reconsider their WTO commitments. Dairy present level to 10 kg by 2005 and other estimates farmers also voiced their grievance and asked the predict a consumption level of 15 kg by 2010. government to protect local industry.

In his paper on the dairy situation in the ASEAN region, Finally, in his survey of the dairy sector in Latin Assara Suwanabol, President of the National Milk America Mr. Ricardo James of the Centro de la Drinking Campaign Board in Bangkok, Thailand, Industria Lechera in Buenos Aires, Argentina reported that, even with the recent economic recession, gave comprehensive statistics on milk production the growth in dairy product demand has still been and consumption in the region. He covered the significant in the ASEAN region, covering ten nations Mercosur countries of Argentina, Brazil, in Southeast Asia namely Brunei, Darussalam, Paraguay, Uraguay as well as the closely Cambodia, India, Laos, Malaysia, Myanmar, the associated Chile; the Andean Pact countries of Philippines, Singapore, Thailand and Vietnam. The Bolivia, Peru, Ecuador, Colombia and region is now one of the most important dairy markets Venezuela, the countries of Central America, replacing Russia, Central America and North Africa, including Honduras, El Salvador, Costa Rica, with about 5.5 million tons of milk equivalent or about Nicaragua, Guatemala and Panama, as well as 10-15 percent of the world dairy trade. Despite the Mexico and the Caribbean countries. disparity in market sizes and stages of development and maturity, all these countries have some common Overall, milk production in Latin America features. appears to have increased by 37 percent, from 41.5 to 57 billion l., between 1990 and 1998. With a total population of more than 500 million, the Mercosur and Chile accounted for 70 percent of ASEAN region is already a large dairy market. More Latin America’s production increase during this importantly, all countries in this region experienced period, the Andean countries for 15 percent and rapid economic growth in the 90s, some with two digit Mexico for 14 percent, production in the GNP growth for many years, and as a result, their Caribbean region dropping by 2.6 percent largely people had more purchasing power. Since ASEANs per due to the adverse situation in Cuba. capita milk consumption is still low, there is a great opportunity for rapidly growing dairy demand. Latin America’s average per capita production of milk in 1998 was 116.2l. ranging from 38.3 l. in The Thai government’s budget for its free school milk the Caribbean to 157.3 l. in the Mercosur this year reached 6,000 million Bhat (US$140 million) countries; per capita consumption of milk ranged while the Philippine Parliament was expected to pass a from 53.6 l. in the Caribbean to 156.7 l. in the school milk bill with an initial fund of 300 million Mercosur countries. Net imports of dairy pesos. Elsewhere the steady increase in demand products into Latin America were nearly 4.4 occurred across all product groups, particularly drinking billion l., Mexico accounting for almost 50 yoghurt, cheese and milk powder. All in all, the rate of percent, in the form of milk powder. growth of milk consumption in the region has been more than ten percent over the past ten years as Recombined Milk and Milk Products compared to the world average of about 1 percent, Another area of considerable interest to many making ASEAN one of the most important emerging emerging dairying countries, in which the IDF dairy markets. has been very active over many years, has been in the organization of international symposia on Major key drivers of the remarkable growth were this subject. The 3rd International rapidly rising income, greater acceptance of dairy Symposium on Recombined Milk and Milk products and school milk programmes in many Products, organized jointly by IDF, Food Science countries. The economic recession during the past four Australia and Aust Dairy Ltd, was held in years however, had slowed down demand increase to a Penang, Malaysia in May 1999, and the recently level that greatly affected the growth of dairy imports. published proceedings (available from IDF in Brussels) represent an outstanding compilation All ASEAN countries depend on dairy imports, which of our current knowledge of this important

11 subject. The 200 delegates from 22 countries were In his opening keynote address Wayne presented with papers by 30 speakers in seven main Sanderson, one of the world's leading experts in technical sessions covering: International perspectives; this field, reminded delegates that the U.S. Products and processing; Ingredients for recombination; Armed Forces were usually credited with Nutritional ingredients; Alternative formulations; and pioneering the development of recombined milk Food safety. 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).

- 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 Meets in Argentina – May 2001 For the first time in IDF’s history an IDF Legislation IDF should also appoint a liaison expert with Week, comprising meetings in the area of Codex food WHO. 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,

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