Socioeconomic Aspects of Dairying in Developing Countries

Development of economically viable and socially acceptable dairy production systems in developing countries requires simultaneous consideration of production, distribution, and pricing aspects. Integration of dairying can best proceed through focusing on a local point of daily contact with farmers such as a collection center or processing plant. Total demand for milk and milk products is forecast to grow most rapidly in the Latin America and Far East regions. Chronic surpluses of the major dairy product traded internationally, nonfat dry milk, will keep international prices relatively low and force most developing countries to subsidize local milk production, at least in initial stages of development. Four basic types of dairying systems for developing countries are defined by criteria of specialization, use of milk, feeding systems, and animal species. Input-output relationships for some of these systems are discussed. Milk transportation and procurement problems for each class also are summarized. The organization and efficiency of milk procurement, processing, and distribution are seen as critical factors in eliciting the needed production response from small holders in developing countries. Minimum sizes for collection and processing systems are summarized. Finally, the potential role of dairying in rural development is discussed, and factors critical for success are listed.