Kolhapur: World milk production is increasing by at least 2 to 3% every year. However, this year the situation is reversed, with a 10 per cent drop in milk, leading to a worldwide milk shortage. That is why milk powder and butter have soared in the international and domestic markets, rising by Rs 100 per kg. Now that summer has started and the demand for milk will continue to rise, there are indications that prices will go up by another 10 to 15 per cent.
India has the highest milk production in the world. However, the US, New Zealand, Australia and Denmark are ahead in terms of population. For the past two years, the corona has shaken the entire world economy. Due to continuous lockdown, the demand for milk decreased and milk became surplus. This resulted in milk production.
Now that the global market has reopened, the demand for milk has increased. In all milk producing countries, production has declined by 10 per cent this year. As a result, the price of cow's milk powder has gone up to Rs 290 per kg and butter to Rs 395 per kg. On an average, prices have gone up by 40 to 50 per cent since December. With the onset of summer, the demand for milk will increase everywhere. It is certain that the price will go up by at least 10 to 15 per cent due to non-availability of milk.
The effects of the Ukraine-Russia war
Ukraine produces large quantities of milk powder and butter, so it imports by-products from Ukraine to other countries, including Dubai. However, the war has completely paralyzed trade there, affecting the prices of other by-products, including powder.
Higher rates for cow butter than for buffalo
Cow's milk is widely consumed worldwide. Therefore, cow butter is getting Rs 10 more per kg than buffalo butter.
New Zealand, Australia determine the market
New Zealand, Australia and Denmark have the highest milk production in the world. The per capita milk production here is four times that of India. Therefore, these three countries are determining the milk market.
Good days for milk producers
There are huge fluctuations in the milk market. On the one hand, while the price of animal feed is increasing, the price of milk is not getting that much. However, now that the minimum price per liter will increase by two to three rupees, the dairy farmers will have better days.