3 January 2007 - Asia replaced Europe as the world's largest milk production region in 2006. It now accounts for 34 percent of global output compared with 30 percent five years ago.
Yearly production growth rates of around 5 percent were driven by the strong increase in the demand for milk and dairy products in the region, sustained by the strong economic growth.
Within the Asian region, China has more than doubled its output over the past five years with growth rates of over 20 percent; this growth is expected to slow as input costs for farmers have increased while milk prices have remained unchanged.
In India, the world’s largest single milk producing country, the sector continues to expand by over 3 percent per year, driven by increasing demand for value-added milk products on the consumer side and extensive dairy development programmes on the supply side.
In Pakistan, milk output continues to expand by over 3 percent per year. The sector potential for growth is significant and the Government is launching several initiatives related to research, capacity building and improvements in the collection and storage systems.
For the Islamic Republic of Iran, another country with a strong dairy tradition , production is expected to rise by over 5 percent, supported by higher milk prices.
Article extracted from "FAO Food Outlook - December 2006"