Dairy contributes to revenue and job creation, says GDP report
Credit: Global Dairy Platform
As dairy sectors develop there are considerable benefits to governments, communities, farmers and residents, in terms of revenues and job creation in those countries, a report from the Global Dairy Platform says. The report on dairy and socio-economic development was released at its annual general meeting in Paris, in conjunction with the United Nations FAO. It is the latest in a series based on the Dairy Impact Methodology (DIM) tool and found several other interesting points supporting the United Nations’ Sustainable Development Goals (SDGs). It says there are over 110 million farmers worldwide directly benefiting from dairy cattle farming, with the sector creating jobs and business opportunities along dairy value chains and providing nutritious milk and other dairy products to over six billion consumers.
First, as national incomes grow, as indicated by the GDP, national dairy systems shift towards a smaller number of holdings with larger herds of higher yielding cows. As the average milk yields increase (indicative of dairy sector development), a smaller proportion of the population lives on dairy farms, and those that do earn more from the enterprise. Fewer people work on farms and more work in the dairy processing industry, and both see higher incomes. More milk is supplied per person, a greater proportion of people consume milk, and the retail price drops, both in real terms and in relation to average wages. Further, more of the milk produced is channelled through formal markets, and potential tax revenue from production and sale of milk and dairy products increases, the report concludes.
The summary notes, “The report explores relationships between dairy sector development and several social indicators that are linked to milk and dairy from cattle. Country level indicators comprising 97 statistical variables were collected for 187 countries and territories in different world regions, with representatives from low, lower middle, upper middle, and high income economies. In a cross-sectional study with a base year of 2018, dairy sector development was approximated by average milk yield and indicators were selected that summarised aspects of dairy farmers’ livelihoods, employment in milk processing plants, consumption of milk and dairy products, and benefits to governments.
“Through these benefits the dairy sector can contribute to achieving the socially oriented SDGs): no poverty (SDG1), zero hunger (SDG2), good health and well-being (SDG3), quality education (SDG4) and decent work and economic growth (SDG8). During the process of dairy sector transformation many farmers will move to other sectors as employees but for some this may be a trade-off to the benefits of sectoral transformation that needs to be managed. Many jobs are created along the dairy value chain, providing growing employment opportunities for the population.”
However, there were warnings in the report, as it noted, “If due care is not taken, the observed progression of dairy systems can be accompanied by negative externalities that would detract from the many societal benefits gained. For example, alternative employment opportunities must be created for those leaving the sector, and care must be taken to avoid environmental damage resulting from a concentration of production. It must be ensured that dairy sector development embraces all dimensions of sustainability.”
For further information please visit: www.globaldairyplatform.com
