Future growth of Africa dairy product market is expected to grow with the growing demand for yoghurt and ice cream in Africa : Ken Research

Being a pronounced continent both in terms of geographical area and population, Africa has a high growth and profit earning opportunities for various dairy products manufactures and retailers in the continent. However, presence of volatility in the economies and fluctuating currency exchange rates of various nations in Africa, most of the countries in Africa are still tagged as developing or under developed nations in world.

In dairy industry Africa , the continent is observed to grow at a steady pace in terms of local currency. The increasing use of high yield milk producing hybrid cow and inclining number of dairy farms across various nations in Africa, the overall milk production capacity in Africa has been recorded to increase from ~ million tonnes in 2010 to ~ million tones in 2015.

According to Ken Research This rise in the milk production capacity at various dairy farms has increased the profit shares of various dairy product manufacturers in different nations of Africa but subsequently due to the declining exchange rate of regional currency/USD of different nations of Africa, the import of dairy products from foreign continents had become costlier for the dairy product dealers. Consequently, it has decreased the profit share of dairy manufacturers in the various nations of the continent; resulting which Africa dairy product market declined from the market size of USD ~ billion in 2013 to USD ~ billion in 2015.

Which Government Regultory Bodies Are Regulating Dairy Product Market In Africa?

The national government policies framework for the dairy sector in African countries differs substantially among each other. None of these countries have a proper farm policy for the dairy sector instead rely on the general agricultural and livestock policy frameworks.

In Algeria, Government of Algeria (GoA) has prioritized development of dairy sector in its nation by establishing several programs to promote dairy practice in country. Major example of this is “Finance law 2014 (Art 44)”, which was framed in 2014 to give exemption from duties and VAT on animal feed inputs and co-products to help dairy farmers in the nation to provide better quality feed to their cattle.

Ethiopia has no specific dairy sector policy in effect and it is currently in the process of formulating a Livestock Master Plan that shall address dairy related issues. Livestock master plan focuses on three key sector areas including dairy cows, milk production from cattle, sheep, goat and camels and specialized poultry-broilers and layers. Under Growth and Transformation Plan (GTP) II drafted by the government of Ethiopia, the projected cow milk production is projected to increase by ~% reaching out to ~ million liters during the period (2015–2020). This production increase would make it possible to meet the milk production targets in the GTP II phase, exceeding the growing domestic demand for milk by ~%.

How Innovation And New Product Development Impact The Africa Dairy Product Market

Dairy products used in Africa post liberalization of dairy sector was limited essentially to raw milk and pasteurized milk, but with the modernization in the industry and entry of new market players, consumers can now easily access to wide range of processed products, such as UHT milk, fermented milk (or traditional sour milk) and dairy products such as butter, cheese, yoghurt, milk powder, ice creams and so forth. Dairy product market in Africa has shown innovation in its product line with the introduction of various types of new products such as flavored milk, sugar free milk, fats free cheese designed for special population segment such as high protein rich cheese for children and low fat cheese for health conscious adults,According to Ken Research,

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