sector de leite milk sector portugal

Portuguese Dairy Sector

Fernando Cardoso (Fenalac)

Pedro Pimentel (ANIL)

Portuguese Dairy Sector

- Milk Production -

Dia de Campo PORTUGUESE DAIRY SECTOR 08/06/2009 3

Milk Production - Major Figures

• Milk Quota (deliveries) 2007/08 – 2.0001.000 tons (99.5%)

• Milk Quota (direct sales) 2007/08 – 9.000 tons (0.5%)

• 11.403 Dairy farmers

• 305.000 Dairy cows

• Average production/animal/year – 6180 Kg

• Milk production value – 750 M euros (31% of Agriculture Value and 13% of

animal production)


Major figures - FENALAC • 4 mainland Cooperatives – Agros, Proleite, Lacticoop and Serraleite

• Business volume - 300 M euros

• In 1996, Agros, Proleite and Lacticoop merged their processing and marketing operations into “Lactogal”

• 5.000 dairy farmers (45% of total)

• 900.000 tons of milk collected (75% mainland production/ 50% national production)

• 90 local cooperatives provide technical assistance and guidance


Portuguese milk production recent evolution

0

500

1.000

1.500

2.000

2.500

93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08

year

TON

Sx1

000

0

10

20

30

40

50

60

70

Dai

ry fa

rmer

s x1

000

Deliveries Quota Producers Source: IFAP


Dairy Farmers

-25%

-20%

-15%

-10%

-5%

0%

%

96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07

Years

Dairy Farmers number (anual variation rate)

Portugal EU-15Source: Eurostat/IFAP


Farm dimension- recent evolution

(average milk production/farm)

Source: CE/IFAP

0

50

100

150

200

250

300

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07

To

ns/f

arm

Year

EU 15 EU 25 Portugal


>40%

>15% a <40%

>5% a <15%

<5%

CONC by Suinos

CONC

Quota distribution (2004) Dairy value/total agriculture value

Source: GPPAA MBS 2002Source: INGA


One Country, several production systems

50%50%

174 tons/farm

11%11%

134 tons/farm

7%7%

687 tons/farm

27%27%

766 tons/farm


Milk price Evolution (EU/FENALAC*)

15,00

20,00

25,00

30,00

35,00

40,00

45,00

Jan 07 fev 07 mar 07 abr 07 mai 07 jun 07 jul 07 ago 07 set 07 out 07 nov 07 dez 07 Jan 08 fev 08 mar 08 abr 08 mai 08 jun 08 jul 08

€/1

00

kg

EU -LTO FENALAC Source: LTO/FENALAC

*FENALAC prices don’t include Azores


Milk price Evolution (EU/AZORES)

Source: LTO/FENALAC

*FENALAC prices don’t include Azores

15,00

20,00

25,00

30,00

35,00

40,00

Jan 07 fev 07 mar 07 abr 07 mai 07 jun 07 jul 07 ago 07 set 07 out 07 nov 07 dez 07 Jan 08 fev 08 mar 08 abr 08 mai 08 jun 08 jul 08

€/10

0 kg

EU -LTO AZORES


Main problems/threats

• Future of milk quotas (effects on

production/prices/industry supply)

• Investment support under national rural

development scheme

• National rules for dairy farms authorization and

functioning

PORTUGUESE DAIRY SECTOR

- DAIRY INDUSTRY -


PORTUGUESE DAIRY SECTOR 2005

Source: INE, Estatísticas Agrícolas (em 103 €)

Nr. Companies 387

Nr. Workers 7.240

Direct Costs 1.253.700

Turn Over 1.583.900

Add VAlue 271.700


A few comments

• Total TURN OVER for dairy sector in 2007: 2,1 billion euro (estimated)

• Only 78 of the total 387 companies have more than 9 workers

• These 78 companies gave jobs to more than 6.700 workers

• These 78 companies represents more than 90% of the estimated Turn Over for 2007


DAIRY SECTOR IN PORTUGUESE INDUSTRY


DAIRY SECTOR IN PORTUGUESE INDUSTRY

• Dairy represents 13% of total turn over of portuguese Food sector being the 2nd larger just above meat and meat products sector (which includes cows, pigs, poultry and eggs)

•Dairy represents no more than 4% of total of companies in the Food Sector, and 7,5% of Food sector number of workers.

• Food sector is still number 1 on portuguese industry, with 15,9 % of turn over, 11,2% of workers and 10,5% of companies.


MASS BALANCE


SELLS DISTRIBUTION

1994 Volume 2004 1994 Value 2004


ONE COUNTRY, TWO DAIRY REGIONS


PER CAPITA CONSUMPTIONS


CONCENTRATION ON DAIRY SECTOR


The MAJOR 6

Major 3 dairy companies operating in Portugal

• LACTOGAL DANONE Fromageries BEL

The 4th to 6th companies

• LONGA VIDA PARMALAT LACTAÇORES


The MAJOR 3 in each MARKET BRANCH

Liquid Milk Butter

Cheese Fermented Milks


IMPORTS AND EXPORTS

-400.000

-300.000

-200.000

-100.000

0

100.000

200.000

300.000

Leite e natas (imp) Leitelho, leites acidificados, ... (imp) Manteiga (imp) Queijo e requeijão (imp) Leite e natas (exp) Leitelho, leites acidificados, ... (exp) Manteiga (exp) Queijo e requeijão (exp)

-300.000

-250.000

-200.000

-150.000

-100.000

-50.000

0

50.000

100.000

150.000

Leite e natas (exp) Leites acidificados (exp) Manteiga (exp) Queijo (exp) Leite e natas (imp) Leites acidificados (imp) Manteiga (imp) Queijo (imp)

-150.000

-100.000

-50.000

0

50.000

100.000

150.000

200.000

250.000

Exportações Importações

In VOLUME

In VALUE

LIQUID MILK


IMPORTS AND EXPORTS (2006)

PORTUGAL unid.: ton UE 3rd Total

0401 - Milk and Cream Exp 165.525 1.397 166.922 SP 165.113 FR 238 IT 53 ANG 862 CPV 230

non concentrated Imp 76.801 1 76.802 SP 48.664 FR 22.293 GER 5.427

0402 - Milk and Cream Exp 11.307 643 11.950 SP 4.627 FR 2.216 IT 2.122 ANG 265 THA 250

concentrated or w ith sugar Imp 12.259 1 12.260 SP 5.427 NL 2.510 GER 1.437

0403 - Fermented or Acidif ied Exp 1.790 674 2.464 SP 807 FR 489 IT 426 ANG 440 CPV 129

Milks Imp 115.967 9 115.976 SP 66.635 FR 28.558 GER 14.610

0404 - Whey and Modif ied Exp 6.082 509 6.591 NL 2.447 SP 2.881 GER 499 HON 96 VEN 96

Whey Imp 4.117 0 4.117 SP 1.773 FR 1.584 GER 361

0405 - Butter and other Exp 9.973 2.380 12.353 FR 3.526 SP 1.459 NL 1.419 MAR 1.985 ANG 167

Dairy Fats Imp 6.447 0 6.447 BEL 2.983 SP 2.298 FR 987

0406 - Chhese and Curd Exp 2.121 1.161 3.282 SP 835 IT 507 AUT 292 ANG 446 USA 335

Imp 27.722 18 27.740 SP 12.157 GER 6.622 FR 5.504 SWI 18

INTRA UE Third Countries

Source: EUROSTAT/EDA


EVOLUTION MDD MARKET SHARE

For several products in dairy sector,

market share for MDD are

continuously increasing and for

products like standard UHT milk, flavoured

milks, basic iogurts or butter, market share are

above 30-35%