1.

10th IFCN Dairy Conference 2009

Press material 1. Key findings

2. IFCN ranking of milk processors by milk intake

3. IFCN ranking countries by milk volume

4. IFCN World Dairy Map 2009

Annex: Additional information

For further information contact:

Torsten Hemme; Chairman of the IFCN,

Contact: info@ifcndairy.org

Version: 16th

June 2009

Our Hosting Organisations 2009

DeLaval International Swedish Dairy Association

10th IFCN Dairy Conference 2009

2

Key findings of the 10th IFCN Dairy Conference 2009 1. Dairy crisis is global - globally 150 million dairy farming families are affected

- World market price of milk reached a level of 20 US-$ or 15 Euro per 100 kg milk.

- The IFCN cost analysis (2008) indicates that only 10% of world`s milkcan be produced at 20US-$.

- This low milk price level is not sustainable unless the market will be distorted by policy.

- Dairy policy will become the main driver for the future world milk price level.

2. IFCN has benchmarked 600 milk processors in over 70 countries

- The top 21 milk processors represent only 21% of world milk production.

- No.1 is Fonterra. They processing 2,7% of the world milk and based in New Zealand.

- No.2-5 are: DFA (Dairy Farmers of America), Nestlé, Dean Foods, FrieslandCampina.

3. IFCN “Milk processor analysis” in 69 countries

- Globally the milk processing industry is very fragmented.

- Locally there are 6 countries where the top 1 processor has a market share above 70%.

- Locally there are 15 countries where the top 3 processors have a market share > 70%.

Pictures of the 10th IFCN Dairy Conference

Key facts of the 10th IFCN Dairy Conference

The IFCN - www.ifcndairy.org IFCN Mission: To create a better understanding of milk production world wide IFCN (International Farm Comparison Network) is a global dairy research network. In a rapid changing dairy world the IFCN acts as an ongoing knowledge creation system. It represents 95% of milk production volume. Via a unique combination of partnerships the IFCN represent the whole dairy chain from the farmer towards the consumers.

The 10th IFCN Dairy Conference Participation: Dairy economists from 38 countries have participated. Dairy researchers from 80 countries have provided input.

Location: Hamra Farm - Tumba- Sweden

Time: 14 - 17 June 2009

Organiser: IFCN Dairy Research Center, Kiel

Hosts 2009: DeLaval, Swedish Dairy Association

Rights The IFCN welcomes any form of distributing of our research finings in the paper attached. Feel free to abbreviate, translate or redraft the text without lost of right content. Please print the text not without mentioning IFCN as the source.

Interesting presentations Hamra Farm in Tumba (build 1901) International research discussions

10th IFCN Dairy Conference 2009

3

IFCN Ranking: Milk processors by milk intake Rank Company name Country Dairy processing plants Milk intake Market share

main location Mill t ME % of world production

1 Fonterra New Zealand International 18,6 2,7%

2 Dairy Farmers of America USA USA 16,2 2,3%

3 Nestle Switzerland International 12,0 1,7%

4 Dean Foods - US USA USA 11,8 1,7%

5 Campina & Friesland The Netherlands The Netherlands 11,3 1,6%

6 Lactalis France International 8,9 1,3%

7 Arla Foods Sweden Denmark/Sweden 8,3 1,2%

8 California Dairies Inc. USA USA 7,7 1,1%

9 Danone France International 7,3 1,0%

10 Kraft USA International 6,7 1,0%

11 Land O' Lakes USA USA 5,5 0,8%

12 Saputo Canada Canada/USA 4,3 0,6%

13 Nordmilch Germany Germany 4,2 0,6%

14 Schreiber Foods USA USA 3,7 0,5%

15 Bongrain France France 3,6 0,5%

16 Parmalat Italy International 3,5 0,5%

17 Murray Goulburn Australia Australia 3,2 0,5%

18 Northwest Dairy Association USA USA 3,1 0,4%

19 Mengniu group China China 2,9 0,4%

20 Glanbia Ireland Ireland/USA 2,8 0,4%

21 Amul India India 2,7 0,4%

Sum top 21 148 21%

Source: IFCN analysis is based on IFCN Dairy Report 2008 + additional analysis and estimates. Data represent mainly the year 2007.

Explanation: Milk intake represents milk volume collected + commodity purchase in home countries and subsidiaries in other countries.

ME= Milk equivalent; Method: Fat/protein method, Data: Basis is mainly 2007 in some cases 2006

IFCN Ranking: Countries by milk volume Milk processed into tradable products

Rank Country Mill tons ECM Country Mil l tons ECM Country Mill tons ECM

1 Ind ia 114 ,4 USA 7 8,7 USA 39,2

2 USA 79,3 Germa ny 2 8,4 Germany 20,1

3 Pakistan 35,2 China 2 3,2 France 17,9

4 Ch ina 32,5 France 2 2,9 New Zea land 15,0*

5 Germany 39,4 India 2 0,6 China 11,4

6 Ru ssia 28,5 Brazil 1 7,7 India 10,0*

7 Brazil 26,2 New Zealand 1 6,9 Brazil 8, 1

8 France 24,2 United Kingdom 1 3,7 Italy 7, 9

9 Ne w Ze aland 17,3 Russia 1 3,6 Neth erlands 7, 3

10 Un ite d Kingdom 13,9 Nethe rlands 1 1,4 Russia 7, 3

11 Ukraine 12,2 I taly 9,8 Poland 6, 3

12 Poland 12 Au st ralia 9,4 Austra lia 5, 8

13 Ne therla nds 11,5 Po lan d 8,4 Arge ntina 5, 5

14 Ita ly 11 Jap an 7,9 United Kin gdom 4, 6

15 Turkey 10,6 Argen tina 7,9 Turkey 4,0*

16 Me xico 10,2 Canad a 7,5 Ukra in e 3, 8

17 Australia 9,6 M exico 6,8 Cana da 3, 6

18 Egypt 8,7 Pa kistan 6,8 Egypt 3,6*

19 Argentina 8,5 Turke y 6,6 Pakista n 3,3*

20 Ca nada 8,1 Ukraine 6 Denmark 3, 3

S ource : IFCN Dairy Rep ort 2008 p p. 58-61 , I FCN d ata, nat iona l sta tistics, estimates

E xp lana tion : E CM f ormula: (4 % fat, 3, 3% p rote in ); * I FCN e stim ates, Da ta are base d on 20 07 m ilk proce ssed 2006

Milk prod uctio n inclu de s a ll anim al m ilk; M ilk de live re d to a p rocesso r, ac cept co nsum ption by calves,

hous ehod use, direct de live re y to ho use ho lds; tra da ble prod ucts are: bu tte r, SMP, W MP , ch esse , co nd en sed m ilk

Milk Production Milk de livered

The World Dairy Map 2009

Results of the IFCN Dairy Report 2008

Annex 1: Program of the main part of the 10th IFCN Dairy Conference

Sun 14.6. 19:00 Welcome evening at Hamra farm -Tumba

Mon 15.6.

Start: 8.30

Dairy farm day

Plenary session: Results of the 2009 IFCN farm comparison work

• Overview of 140 farms and 44 countries analysed

• Methods - the new IFCN model TIPICAL-5-0

• Results 2009 work (Cost maps, supply curve, time series, etc)

• Innovative results on carbon foot prints, feed efficiency, ROI-assets, activity based costing, alternative costing concepts, sustainability indicators etc.

Workshop Session 1 (11.00 - 12.30)

Workshop Session 2 (13.30 - 15.00 )

Reporting afterwards of both workshops in plenary

Public event in Stockholm – welcome by Swedish Dairy Association

Topic: Volatility & Sustainability – point of view

Guest: Argentinean farmer, Swedish farmer, Swedish Dairy Association

Tue 16.6.

Start: 8.30

Dairy sector day

Plenary session: Results of the 2009 IFCN country profile analysis

• Monitoring of global trends in milk production and demand

• Regional view of milk production

• Global and national price developments milk

Workshop Session 3 (11.00 - 12.30)

Workshop Session 4 (13.30 - 15.00)

Reporting afterwards of both workshops in plenary

Hamra Farm - Visit facilities and exhibitions on your own schedule

10 year anniversary of the IFCN – Midsummer event

Wed 17.6.

Start: 8.30

End: 13.30

IFCN strategy day

Plenary session on different topics:

• Developments in dairy farm structure

• IFCN Ranking – Milk processors by milk intake

• Discussing the IFCN strategy for 2010 and vision 2020

Ceremony of IFCN awards 2009