International trade in dairy products is expected to remain steady in 2001 despite the outbreak of foot-and-mouth disease among livestock in several countries. There might be shortage of some dairy items, notably milk powder, causing strengthening of prices during the second half of the year.
The global production of milk is projected to rise by about two per cent this year to touch 585 million tonne mark. Indian milk output will scale a new high of 81 million tonne, according to the projections released by the United Nations Food and Agriculture Organisation (FAO).
The foot-and-mouth disease in the European Community, Argentina and Uruguay had caused some interruption in international trade of dairy products as several countries had imposed bans on dairy imports.
But the realisation that most dairy products are heated to a temperature that eliminates any trace of the disease has made them reconsider their decisions. This issue, therefore, may not have a significant trade impact, the FAO feels.
The price outlook for dairy products in the second half of 2001 is, however, described by the FAO as
