Economic analysis of milk production and consumption in the Middle East and North Africa

Abstract

Milk products are considered as the essential food commodities for humans. Milk products contain essential elements for the human body such as protein, glucose, minerals and vitamins. Moreover, milk is considered the cheapest source of animal protein, an important resource for some related transformation industries and provides employment opportunities for a large number of small producers in both rural and urban areas. The aim of this paper is to analyze the factors which determine the supply and demand for liquid milk (henceforth milk) in the Middle East and North Africa in order to point out the main problems and constraints obstructing the milk production in this region. The research also attempts to understand the drivers for the development in milk production in the Middle East and North Africa. Total milk production in the Middle East and North Africa increased from about 12.57 million tons in 1990 to about 25.18 millions tons in 2008. This paper attempts to identify the factors which influence the effectiveness of production, consumption and foreign trade of milk in the Middle East and North Africa. The most important factors affecting consumption is the population, per capita income and produced quantity where a 1% increase in all of them results in increasing the quantity consumed by 1.3%, 2.86% and 0.611%, respectively. Milk sector provides employment opportunities for more than 25% of the working force in some Middle East and North Africa countries.