Colombia Cow Milk Market Production and Fluid Milk Consumption by Volume,
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2 TABLE OF CONTENTS 1. Colombia 1.1. Colombia Milk Market Introduction Colombia Cow Milk Market Production and Fluid Milk Consumption by Volume, Colombia Milk Cow Numbers and Milk Production per Cow, Colombia Dairy Products Market Introduction Colombia Dairy Products Market Production by Volume, Colombia Dairy Product Market Production by Volume, Butter Cheese Skim Milk Powder Whole Milk Powder Others (Milk Drinks & Fermented Products, Cream, Condensed Milk & Whey Powder) Colombia Dairy Product Market Consumption by Volume, Butter Cheese Skim Milk Powder Whole Milk Powder Colombia Dairy Product Market Net Trade by Volume, Butter Cheese Skim Milk Powder Whole Milk Powder 1.3. Trends and Developments in Colombia Milk and Dairy Products Market 1.4. Competitive Landscape 1.5. Colombia Milk and Dairy Products Market Future Outlook 1.6. Colombia Macro Economic Indicators: Current and Projections 2
3 Population, GDP, Inflation, Unemployment Rate as a % of Labour Force, Demographic Distribution of Population on the basis of Age, Personal Disposable Income and Number of Households in Colombia, Distribution of Income among Households, Appendix 2.1. Market Definition 2.2. Abbreviations 2.3. Research Methodology Data Collection Methods Approach 2.4. Disclaimer 3
4 LIST OF FIGURES Figure 1: Colombia Cow Milk Production and Fluid Milk Consumption along with Manufacturing Use and Exports by Volume in Thousand Tonnes, Figure 2: Colombia Milk Cow Numbers in Thousand Head and Milk Production per Cow in Kilograms, Figure 3: Colombia Total Dairy Products Market Production by Volume in Thousand Tonnes, Figure 4: Colombia Butter Market Production by Volume in Thousand Tonnes, Figure 5: Colombia Cheese Market Production by Volume in Thousand Tonnes, Figure 6: Colombia Skim Milk Powder Market Production by Volume in Thousand Tonnes, Figure 7: Colombia Whole Milk Powder Market Production by Volume in Thousand Tonnes, Figure 8: Colombia Others (Milk Drinks & Fermented Products, Cream, Condensed Milk & Whey Powder) Market Production by Volume in Thousand Tonnes, Figure 9: Colombia Butter Market Consumption by Volume in Thousand Tonnes, Figure 10: Colombia Cheese Market Consumption by Volume in Thousand Tonnes, Figure 11: Colombia Skim Milk Powder Market Consumption by Volume in Thousand Tonnes, Figure 12: Colombia Whole Milk Powder Market Consumption by Volume in Thousand Tonnes, Figure 13: Colombia Butter Market Net Trade by Volume in Thousand Tonnes, Figure 14: Colombia Cheese Market Net Trade by Volume in Thousand Tonnes, Figure 15: Colombia Skim Milk Powder Market Net Trade by Volume in Thousand Tonnes, Figure 16: Colombia Whole Milk Powder Market Net Trade by Volume in Thousand Tonnes, Figure 17: Colombia Population Trend in Million, Figure 18: Colombia Gross Domestic Product in USD Billion, Figure 19: Colombia Inflation, Average Consumer Prices in Percentage,
5 Figure 20: Colombia Unemployment Rate as a Percentage of Labour Force,
6 LIST OF TABLES Table 1: Colombia Cow Milk Production and Fluid Milk Consumption along with Manufacturing Use and Exports by Volume in Thousand Tonnes, Table 2: Colombia Milk Cow Numbers in Thousand Head and Milk Production per Cow in Kilograms, Table 3: Competitive Landscape of Major Dairy Products Companies (Colanta Ltda and Alpina) in Colombia Table 4: Demographic Distribution of Population in Colombia on the basis of Age and Gender, in Million, Table 5: Personal Disposable Income in USD Million and Number of Households in Thousands in Colombia, Table 6: Income Distribution among Households in thousands in Colombia,
7 COLOMBIA COLOMBIA MILK MARKET INTRODUCTION COLOMBIA COW MILK MARKET PRODUCTION AND FLUID MILK CONSUMPTION BY VOLUME, The milk production in Colombia has increased at a steady growth of 2.5% during the period from During the period, the production increased from 6,873 thousand tonnes in 2007 to 7,221 thousand tonnes in In the forecasted period, the production is expected to increase at the same pace as achieved in the historical period. The milk production will increase from 7,221 thousand tonnes in 2009 to ~ thousand tonnes in Figure: Colombia Cow Milk Production and Fluid Milk Consumption along with Manufacturing Use and Exports by Volume in Thousand Tonnes, Milk Market Size ('000s Tonnes) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Cow Milk Production Fluid Milk Consumption Manufacturing Use COLOMBIA MILK COW NUMBERS AND MILK PRODUCTION PER COW, Milk cow numbers have increased at a steady growth of 2.0% over the period from The cow numbers increased from 6,835 thousand head in 2007 to 7,106 thousand head in The future period is expected to showcase the same growth trend as achieved in the 7
8 historical period. It is anticipated that the cow numbers will increase from 7,106 thousand head in 2009 to ~ thousand head in Milk production per cow increased from 1,006 litres in 2007 to 1,016 litres in 2009, showcasing a marginal CAGR of 0.5% during the period. In the future, the milk production per cow is expected to grow at average annual growth rate 0.2%. The milk production per cow is expected to increase from 1,016 litres in 2009 to ~ litres in Figure: Colombia Milk Cow Numbers in Thousand Head and Milk Production per Cow in Kilograms, Milk Cow Number ('000s Head) 8,200 8,000 7,800 7,600 7,400 7,200 7,000 6,800 6,600 6,400 6, ,035 1,030 1,025 1,020 1,015 1,010 1,005 1, Milk Production per Cow (Kg) Milk Cow Numbers ('000 Head) Milk Production per Cow (Kg) COLOMBIA DAIRY PRODUCTS MARKET INTRODUCTION COLOMBIA DAIRY PRODUCTS MARKET PRODUCTION BY VOLUME, Dairy products market included butter, cheese, skim milk powder, whole milk powder, milk drinks and fermented products, cream, condensed milk and whey powder. The dairy production declined in the year 2008 marginally by 1.6%. The production further declined drastically by 35.8% because of economic depression. In volume terms, the production decreased from 229 thousand tonnes in 2007 to 144 thousand tonnes in The dairy products market is expected to recover from the recession and has shown signs of recovery 8
9 from 2010 onwards. In 2010, the market is expected to register a growth of 5.7% to reach 153 thousand tonnes. By 2015, the total dairy products market is projected to reach ~ thousand tonnes, showcasing a CAGR of ~% during the period from Figure: Colombia Total Dairy Products Market Production by Volume in Thousand Tonnes, Dairy Product Market Size ('000s Tonnes) Total Dairy Products Market Production COLOMBIA DAIRY PRODUCT MARKET PRODUCTION BY VOLUME, CHEESE Cheese is the second largest dairy product produced in Colombia after whole milk powder. The production of cheese increased marginally in 2008 by 1.6% and then declined in 2009 by 7.9%. In volume terms, the production decreased from 62 thousand tonnes in 2007 to 58 thousand tonnes in During the period from , the production declined at a CAGR of 3.3%. The future period is expected to register a marginal growth in the future. The period is expected to register a growth of ~%, wherein the production of cheese is expected to increase from 58 thousand tonnes in 2009 to ~ thousand tonnes in
10 Figure: Colombia Cheese Market Production by Volume in Thousand Tonnes, Production ('000s Tonnes) Cheese Production COLOMBIA DAIRY PRODUCT MARKET CONSUMPTION BY VOLUME, WHOLE MILK POWDER Whole milk powder was the largest dairy product consumed in 2007 at 63.0 thousand tonnes in The consumption increased in 2008 to 69 thousand tonnes. The consumption plummeted to 37 thousand tonnes in 2009, registering a fall of 46.4%. The consumption in the near future is expected to register a growth of 4.4% during the period from to reach ~ thousand tonnes in Figure: Colombia Whole Milk Powder Market Consumption by Volume in Thousand Tonnes, Consumption ('000s Tonnes) Whole Milk Powder Consumption 10
11 COLOMBIA DAIRY PRODUCT MARKET NET TRADE BY VOLUME, BUTTER The export surplus for butter trade was high at 6 thousand tonnes in 2007 and The production of butter fell in 2009 which had a negative effect on the exports as well. In 2009, a trade deficit of 1 thousand tonnes was registered. With no possible initiative in sight from the Colombian government and limited inducement for the manufacturers, it is expected that the butter trade deficit will continue in the future. The trade deficit is expected to reach ~ thousand tonnes in Figure: Colombia Butter Market Net Trade by Volume in Thousand Tonnes, Net Trade ('000s Tonnes) Butter COMPETITIVE LANDSCAPE Table: Competitive Landscape of Major Dairy Products Companies (Colanta Ltda and Alpina) in Colombia Major Players Business Overview Key Business Segments (Revenue Contribution) Financials Geographical Reach 11
12 Source: Company Reports, AM Mindpower Solutions COLOMBIA MILK AND DAIRY PRODUCTS MARKET FUTURE OUTLOOK Industry Factors Market Impact Comments Milk products a vital component of the food Nutritional system Reserved Nature of the dairy products market Oligopolistic competition Inadequate government policy Cause: Effect: Cause: Effect: Cause: Effect: Cause: Effect: Source: AM Mindpower Solutions Note: Shaded region represents the degree of impact on the market 12
13 APPENDIX MARKET DEFINITION Cow Milk is defined as the raw milk produced by cows in Latin America which are processed in fluid milk and grade B milk for manufacturing use of other dairy products such as Butter, Cheese and others. Dairy products market includes Butter, Cheese, Skim Milk Powder, Milk Drinks and Fermented Products, Condensed Milk, Cream and Whey Powder segments. Milk Drinks and Fermented Products are defined as the dairy products made through microbial fermentation process using lactic acid bacteria such as Buttermilk, Sour cream, Yogurt, Kefir and Koumis. ABBREVIATIONS UHT: Ultra High Temperature GDP: Gross Domestic Product CAGR: Compound annual growth rate DISCLAIMER No part of this manual or any material appearing may be reproduced, stored in or transmitted on any other Web site without written permission of AM Mindpower Solutions and any payments of a specified fee. Requests to republish any material may be sent to us. 13
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