For humans, the substances in milk provide both energy and the building materials for growth. Milk also contains antibodies that protect against infection. Major categories of milk products include liquid milk, desserts, cream, fats and spreads, ice cream, natural and processed cheese, and yogurt.

According to FAO estimates, the Central and Eastern European, Balkan, and CIS countries account for around 20% of milk production worldwide. Poland is the largest producer in Central and Eastern Europe. In the CIS countries, the two largest milk producers are Russia and Ukraine. Investment in dairy development projects has proved particularly useful in strengthening rural economies in CIS countries because all participants in the supply chain can benefit from the investment and producers gain from a regular cash flow.

World production of milk usually follows a growth trend of around 2% each year, In spite of recent declines in production and growing consumer health concerns, the milk industry is forecasted to be valued at around USD133 billion and consumption is expected to reach over 140 billion litres by the end of 2010. The Russian Federation is the world’s largest dairy product importer. Belarus, which is emerging as one of the region’s largest exporters, is forecasted to expand its production by up to 5% a year.

Sources: FAOSTAT, FAO Food Outlook 2004 - 2009; FAO and EBRD Agribusiness Handbooks; EastAgri