India tops milk production league

India is now the world’s largest milk producer, says a report from market analyst Datamonitor. But, of the 78 million tonnes of milk produced in that country each year, just 8% is processed, with the remainder being retained by farmers or consumed untreated.
At 6.4 kg per head in 1997, the annual consumption rate of dairy products in India is low, but is said to be growing steadily.
In terms of dairy products, the Chinese market is the largest in the Asia Pacific region, with 7.7 million tonnes manufactured last year. After China, Japan is the most significant processor, but its depressed economy means that the dairy market there has reduced by a year on year average of 0.1% since 1991.
l Last month the Indian government lifted restrictions on exports of powdered milk and butter oil with the aim of encouraging sales of processed foods. Until then milk exports were regulated through quotas.